US and Iran discuss phased deal to reopen Hormuz and end US blockade

The United States and Iran are reportedly engaged in discussions to implement a phased deal aimed at reopening the Strait of Hormuz and terminating the US naval blockade. This development, reported by @FirstSquawk, comes amid ongoing tensions between the two nations, which have seen the strategic waterway effectively closed due to military activities. The negotiations are said to involve potential concessions from the United States and specific conditions set by Iran, suggesting that a formal agreement could be on the horizon. However, the talks are occurring under a climate of continued coercive pressure, with Iran warning of possible expanded retaliation. Key Takeaways Reports of a phased deal to reopen Hormuz and end the blockade appear consistent with increased odds of a US-Iran agreement. The current market pricing suggests participants may view the likelihood of a September 30 agreement as low, with a 5.7% probability. Any formal announcement or continued negotiation could impact market expectations and pricing for related agreements. What to Watch Observers should monitor any official statements from the US and Iranian governments, as well as actions taken by the US Central ...