Washington: US President Donald Trump said “respect” from Iran would be key to sustaining peace after the end of the Iran-Israel war, expressing optimism about fully reopening the Strait of Hormuz to create “an oil gusher”.
“As long as they respect us, I don’t want to use the word fear because that’s an inappropriate word, but as long as they respect us, we’re not going to have any trouble,” Trump told reporters at his Oval Office Monday.
Iran effectively closed the strait after the US and Israel attacked Feb 28, causing fuel prices to skyrocket far beyond the region. The interim agreement to end the war was supposed to reopen the channel. Dozens of ships passed through it over the weekend, even though the main route is still mined and closed.
The lead negotiator of the Iranian delegation, Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, insisted Monday that the Strait of Hormuz will be managed by Iran, but following international laws.
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“Hopefully we can activate the strait again, in terms of passage, and bring prosperity back to the regional and global economy,” he told Iranian state media on the plane on his way back from Switzerland.
Ghalibaf and the Foreign Minister, Abbas Araghchi, arrived on Monday night in Oman, where they met with the country’s Foreign Minister Badr al Busaidi to discuss the peace efforts and ensure safe navigation in the Strait of Hormuz.
The US Treasury issued a 60-day license Monday waiving sanctions on Iranian oil as part of the interim agreement. Notably, the license allows Iranian oil to be imported into the US, which has not imported significant amounts of Iranian oil since the 1990s.
Tanker traffic continued to pick up through the Strait of Hormuz. According to data and analytics firm Kpler, there were 71 confirmed transits over the weekend, with a peak of 35 crossings Saturday. Before the war, 100 to 130 vessels passed through the strait each day.
Ships have been avoiding the central route to steer clear of mines, choosing instead to use the smaller northern route, which goes through Iranian waters, and the southern route, which goes through Omani waters.
In the markets, Brent crude oil fell 3.2 per cent to USD 77.52 per barrel, closer to its roughly USD 70 price from before the war.
