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Iran, Oman to Set New Legal Status for Hormuz Strait, Iranian Ambassador Reportedly Says

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Iran and Oman will set out a "new legal status" for the Strait of Hormuz, which the US would have to accept to continue using the crucial waterway, multiple media outlets reported Wednesday, citing Iranian Ambassador to Russia Kazem Jalali.

Jalali made the comments after a meeting between the US and Iranian officials on the sidelines of the United Nations General Assembly in New York on Tuesday evening.

The strategically important Strait of Hormuz accounted for almost 20% of global oil and gas flows before the Iran war began.

has reached out to Iran's Ministry of Foreign Affairs for comments.

What else is happening in Oil & Energy?

Oil & Energy

Trump Signals Momentum in US-Iran Talks Toward Potential Deal

US President Donald Trump said Tuesday that meetings involving US officials and Iranian mediators had gained momentum toward a potential deal.Trump made the comments on the sidelines of the United Nations General Assembly during a multilateral meeting with the Gulf Cooperation Council in New York."I just want to make a statement that Steve and Jared had a very productive meeting today with mediators of Iran," Trump said, adding, "I think there's a lot of momentum for them to make a deal."Iranian Foreign Minister Abbas Araghchi met US envoy Steve Witkoff at the General Assembly at Witkoff's request, Iranian state media IRIB News reported, citing a source.Iran presented conditions for reopening the Strait of Hormuz, including lifting the naval blockade, releasing its frozen assets, and ending the war on all fronts, according to the report.Iran's Ministry of Foreign Affairs did not immediately reply to' request for comments.

Oil & Energy

Oil Update: Crude Falls as Saudi Arabia Plans Pipeline Restart, US-Iran Talks in Focus

Global crude futures fell to a two-week low in after-hours trading on Tuesday as reports of Saudi Arabia's plans to restart the East-West pipeline and signs of possible talks between the US and Iran eased supply-risk concerns.Dubai 1st Line Futures dropped 1.8% to $94.23/bbl. Front-month West Texas Intermediate futures fell 0.7% to $95.25 per barrel, while Brent futures retreated 1.9% to $98.28/bbl.President Trump reportedly said that the US met with Iran's delegation for three hours on the sidelines of the UN General Assembly in New York City. "It was a very good meeting," Trump told reporters during a bilateral meeting with Ukrainian President Volodymyr Zelenskyy at the UN.Trump also said that said he has a "big decision" to make on whether to seek a negotiated deal with Iran or "annihilate the Islamic Republic." Soojin Kim, research analyst at MUFG, said that the prospects for diplomacy are compressing the geopolitical premium, but continued disruptions across Hormuz, Saudi export infrastructure, and the Red Sea leave the physical market vulnerable.Meanwhile, Saudi Arabia has restarted operations at its East-West Pipeline and could resume crude exports from the Red Sea port of Yanbu, according to media reports. Iran has reportedly suggested it could reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade on Iranian ports.Saxo Bank strategists said that the decline of about 2% in Brent prices on Monday followed signs that Saudi Arabia is restoring capacity on its East-West pipeline after last week's drone strikes, alongside progress in diplomatic efforts to end the US-Iran war.

Oil & Energy

Update: Market Chatter: Abu Dhabi's XRG Weighs LNG Canada Investment, Approaches Project Backers

(Updates with company responses in paragraphs 3-4.)Abu Dhabi's XRG is looking to expand its position in liquefied natural gas by considering a possible investment in the Shell-led (SHEL) LNG Canada project, Bloomberg reported Tuesday, citing people familiar with the matter.The state-owned group has approached current project investors, including PetroChina, about acquiring part of their interests, although the discussions remain preliminary and may not result in a deal, the report said.LNG Canada toldin an emailed response that it does not comment on the business interests, activities or decisions of individual joint venture participants.Shell declined to comment in response to a request from, while XRG and PetroChina did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$SHEL