US-Iran deal keeps Strait of Hormuz toll-free for 60 days
Why it matters: The waterway handles about 20% of global oil traffic, and Brent crude fell 3% as passage prospects improved.
A new U.S.-Iran memorandum of understanding keeps the Strait of Hormuz open without transit charges for at least 60 days, easing fears over a critical oil shipping lane. President Donald Trump wrote that Iran had assured the United States there would be no tolls, insurance costs or other charges for ships using the strait. The interim peace deal is meant to end the recent conflict, but Washington and Tehran are still disputing parts of the 14-point framework. The agreement also calls for an end to hostilities, including in Lebanon, where clashes involving Israel and Hezbollah have continued. Iran and Oman said Tuesday they would work on a separate navigation-services agreement covering costs under international standards.