Hormuz remains central as U.S.-Iran talks resume

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U.S.-Iran talks resume

Highlights

U.S. and Iranian officials resumed indirect talks.
Hormuz remains central to the proposed agreement.
Middle East crude exports rose to 12.8 million bpd.

Iranian Foreign Minister Abbas Araghchi remained in New York after the United Nations General Assembly and met mediators while awaiting Washington’s formal response. Further negotiations are expected to focus on an amended version of the seven-day proposal Tehran presented last week, according to CNBC.

Talks return to Iran ceasefire plan

The Iranian framework calls for an end to hostilities, the release of frozen Iranian assets, an end to sanctions on Iranian oil, and the lifting of the U.S. blockade on Iranian ports. Iran would then reopen the Strait of Hormuz and resume negotiations over its nuclear program.

President Donald Trump rejected the original proposal on Saturday, but talks through mediators continued. On Monday, Trump confirmed that U.S. officials had spoken separately with mediators, without providing details. Iran, meanwhile, said it was waiting for a definitive U.S. response before deciding its next move.

Oil flow recovers but remains below normal

The talks come as physical crude shipments from the region continue to recover. Exports from major Middle Eastern producers are expected to reach 12.8 million barrels a day in September, the highest since the conflict began in February. That remains about 6 million bpd below the February level of 18.8 million bpd.

Shipments through the Strait of Hormuz are projected at roughly 7.4 million bpd this month. Saudi Arabia is leading the rebound, with exports expected to reach about 5.4 million bpd after falling to 2.45 million bpd in August.

The recovery makes the waterway central to both the negotiations and the physical oil market. Before the war, the strait handled about 125 large commercial vessels a day and roughly 20% of the global daily crude oil and liquefied natural gas supply.

Oil prices rise as talks continue

The latest diplomacy has yet to remove uncertainty over regional oil flows. Previous mediated ceasefires in April and June unraveled, while the current proposal still leaves the U.S. and Iran negotiating over sanctions, the blockade, and nuclear issues.

Oil prices moved higher on Tuesday. Brent rose 1.19% to $99.94 a barrel, while WTI gained 1.17% to $94.39, according to the latest market readings provided. U.S. diesel prices also remain near recent record levels, with Washington considering possible restrictions on diesel exports.

Earlier, we reported that Iran pushes negotiations as the Hormuz standoff continues.

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