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Strait of Hormuz Reopening Delayed by Iran-US Talks

Bloomberg Markets •
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The wait stretched on for Iran’s response to a US proposal to end 10 weeks of war, as the world’s largest oil company warned it would take months for the market to return to normal even if the Strait of Hormuz reopened immediately. Aramco, Saudi Arabia’s state-owned energy giant, emphasized that restoring stability to global oil supplies would require sustained diplomatic efforts, not just the reopening of the strategic waterway. The Strait of Hormuz—a critical chokepoint for 20% of the world’s oil shipments—remains a focal point of tension, with its closure exacerbating supply chain disruptions and price volatility. While a resolution could ease tensions, 10 weeks of conflict have already strained energy markets, with analysts cautioning that normalcy would not return quickly even if the strait were reopened. The situation underscores the deep entanglement of geopolitics and energy security, as both sides weigh the risks of prolonged hostilities against the potential for a fragile ceasefire.