Oil prices fell slightly on news that Tehran made a new proposal to reopen the Strait of Hormuz, which Iran’s foreign minister said could unblock the key trading route within a week and restart talks to end the war. The proposal builds on an earlier agreement to extend a ceasefire, which collapsed in July. US and Iranian negotiators are discussing a phased deal to reopen the strait and lift Washington’s economic blockade, Reuters reported.
But so far, neither side has been willing to surrender leverage first and the timing is key: Reaching a deal before the midterms could benefit Trump by easing the sky-high fuel prices that have become a major issue for Americans voters. The political incentive for an agreement could wane after the November polls, however. Meanwhile, Iran-backed Houthis continued to target Saudi oil export infrastructure on the Red Sea coast as the kingdom pumps more crude through its East-West pipeline, but is yet to resume the loading of tankers.