In a statement, the Iranian navy says that “with the end of threats from aggressors and in light of new procedures, safe and stable transit through the Strait of Hormuz will be possible”. With that, we’re seeing oil prices crater further on the session and risk trades rally to fresh highs on the day.
The navy also expressed gratitude to ship vessels in the Gulf region for their “cooperation in transiting the Strait of Hormuz according to Iranian regulations”. The way that said message is being communicated makes it sound like the Iran-established traffic separation scheme will be ended and normal flows should resume. Or at least that seems to be how things look to be translated at first glance.
This article was written by Justin Low at investinglive.com.
