Iran and Oman are approaching a deal to secure safe transit through the Strait of Hormuz. This was announced by the foreign ministers of both countries. They discussed a proposed framework to establish a "temporary navigational corridor through the Strait of Hormuz" and a joint project to clear mines.
In response to this announcement, oil prices have continued to decline, with international benchmark Brent Crude falling below $90.
Only five commodity vessels transited the Strait of Hormuz on Tuesday, down two-thirds from the 10-day average of 15.
Meanwhile, the U.S. has held off on extending significant secondary sanctions, which could impact Iran's economy.
China, which buys around 90% of Iran's oil, has threatened to retaliate if the U.S. opts to expand economic pressure.
