Last week the United States and Iran reached an interim agreement to reopen the Strait of Hormuz, a chokepoint that once handled about a fifth of global oil traffic. The deal signals a thaw after years of sanctions and shipping bans.

Officials will convene in Switzerland this week to sign the pact, though a draft remains unpublished. Negotiations will then span 60 days focused on Iran’s nuclear programme, a long‑standing sticking point that has kept energy prices volatile for airlines, shipping companies, and oil majors around the world.

The Strait’s reopening could lift tanker traffic, clearing the nearly 600 vessels stranded in the area. Market watchers note that a swift resumption would ease supply concerns, potentially nudging Brent crude down by a few points as traders reassess risk premiums for refining margins and hedging strategies.

Stocks responded positively, with major indices gaining 0.5% as investors digest the diplomatic progress. The pound edged up 0.8% against the dollar, reflecting confidence that oil flows will stabilize. Analysts warn that unresolved details could still derail the deal, keeping volatility alive for traders worldwide today.