Iran Offers Deal to Reopen Strait of Hormuz Within Seven Days, Raising Hopes for Oil Market Relief
NEW YORK, September 26, 2026 — Iran has offered the United States a potential agreement that could reopen the Strait of Hormuz within seven days, raising hopes of easing one of the biggest disruptions to global energy markets since the conflict began.
Iranian Foreign Minister Abbas Araghchi said Tehran could restore normal maritime passage through the strategic waterway if Washington meets conditions contained in a memorandum of understanding (MOU) signed in June.
“The choice now rests with the United States,” Araghchi told reporters at the United Nations in New York, saying Iran had delivered the proposal to Washington through Qatar.
A US official confirmed that positive discussions were taking place through mediators, including on nuclear-related issues, although Washington indicated it was under no immediate pressure to reach an agreement.
Hormuz Reopening Could Ease Global Energy Pressure
The Strait of Hormuz is one of the world’s most important energy chokepoints, with around 20% of global oil and liquefied natural gas shipments previously passing through the waterway.
Its disruption has caused sharp fluctuations in global energy prices and increased transportation risks for oil and gas shipments.
A sustained reopening could therefore provide significant relief to global energy markets by restoring shipping capacity, reducing supply concerns and easing pressure on freight and insurance costs.
For oil-importing economies, lower global energy prices could also help reduce fuel, electricity, transport and production costs, while easing inflationary pressure.
Iran Says Agreement Is Already Prepared
Araghchi said the measures required to reopen the waterway were already included in the June MOU and that Iran was prepared to act if Washington demonstrated sufficient commitment to a deal.
“If the necessary conditions are met, the strait can be reopened, a normal maritime passage restored within seven days,” he said.
The June agreement was designed to establish a ceasefire and partially restore shipping through the Strait of Hormuz. It included commitments relating to nuclear activities, an end to military operations, the removal of a US naval blockade and potential sanctions relief.
It also called for Iran to use its best efforts to ensure the safe passage of commercial vessels through the waterway.
However, the arrangement collapsed after both sides resumed military operations.
Shipping Remains Far Below Normal
The economic impact of the disruption remains substantial.
Shipping data cited by Reuters showed a recent 10-day average of around 18 vessel transits per day, with daily traffic falling as low as nine vessels on some days.
Before the conflict, substantially higher volumes of energy and commercial shipping moved through the Strait of Hormuz.
A sustained increase in vessel traffic would therefore be closely watched by oil traders, shipping companies, insurers and import-dependent economies.
Red Sea Disruptions Add to Global Shipping Risk
The situation has been further complicated by renewed attacks by Iran-aligned Houthi forces targeting Saudi energy infrastructure and shipping routes in the Red Sea.
The Houthis have expanded their control over strategically important areas of Yemen’s Red Sea coastline, including the port of Mokha, near the Bab al-Mandab Strait.
The Bab al-Mandab is another critical global shipping chokepoint connecting the Red Sea with the Gulf of Aden.
Attacks in both the Strait of Hormuz and the Red Sea therefore threaten to increase shipping distances, insurance premiums, freight rates and energy transportation costs.
Businesses Watch Oil and Shipping Costs
A diplomatic breakthrough between Washington and Tehran could have consequences well beyond the Middle East.
Lower geopolitical risk and the restoration of shipping through Hormuz could reduce volatility in crude oil prices, LNG markets, freight rates and marine insurance costs.
Businesses dependent on imported fuel, raw materials and international shipping could benefit from improved supply reliability and lower logistics costs.
However, continued disruption across both Hormuz and the Red Sea could keep energy and transportation costs elevated, creating additional pressure on global inflation and corporate margins.
For countries such as Sri Lanka, which remain highly sensitive to international fuel prices and freight costs, developments around the two shipping chokepoints could have direct implications for import bills, inflation, transport costs and foreign-exchange requirements.
Trump Faces Pressure for a Deal
The potential reopening offer comes as US President Donald Trump faces pressure to bring the conflict to an end amid rising energy costs and the approaching US congressional elections.
Trump has previously warned Iran of devastating consequences if a deal cannot be reached, while Tehran has rejected what it describes as negotiations conducted under military pressure.
Iranian President Masoud Pezeshkian said a ceasefire process could begin immediately if the United States accepted the proposed framework. He also indicated that Iran was prepared to allow UN nuclear inspectors into the country as part of negotiations.
The latest diplomatic initiative has therefore placed the Strait of Hormuz at the centre of efforts to end the conflict.
For global markets, the critical question is whether the proposed agreement can translate into a sustained reopening of the waterway — potentially turning one of the world’s biggest current energy and shipping risks into a major source of market relief.
