Market Chatter: Draft Peace Deal Proposes Iran Restoring Hormuz Traffic to Pre-War Levels in 1 Month

A draft peace framework between the US and Iran, seen by Iran's state broadcaster, proposes Iran restoring commercial transit to pre-war levels within a month of signing, media outlets reported on Wednesday.

The draft also includes a requirement for the withdrawal of US troops from Iran's vicinity.

Ship traffic through the Hormuz Strait would be handled by Iran and Oman, according to the draft, the reports said.

The draft has not been finalized yet and would require "tangible verification" for Iran to move forward with it, Iranian TV said, according to the reports.

(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.)

India-bound Adnoc LNG Tanker Crosses Hormuz Strait, Bloomberg Analysis Shows

An India-bound tanker laden with liquefied natural gas from state-owned UAE energy giant Abu Dhabi National Oil Company has crossed the Strait of Hormuz, according to a Bloomberg analysis of ship-tracking data published Wednesday.This is in addition to the recent transit of at least two non-Iranian oil supertankers through the crucial waterway, which is responsible for almost 20% of the global energy flows.The Hormuz Strait has been effectively shut for LNG traffic since the start of the Iran war on Feb. 28, cutting off almost one-fifth of the global supply of the super-chilled gas, the report said.Adnoc has also shipped three other cargoes from the Persian Gulf on tankers, with the last of these detected in western India, the report said.The latest shipments are a fraction of pre-war volumes when about three LNG tankers, primarily carrying fuel from top producer Qatar, exited the Hormuz Strait every day, the report said.In response to anquery, an Adnoc spokesperson said the company does not comment on the position, movements, or routing of its vessels as a matter of policy.

EMEA Natural Gas Update: Futures Slide as Peace Process Survives Renewed US Strikes

European natural gas futures were down on Wednesday as peace talks appeared to remain on track despite US strikes against Iran earlier this week during a ceasefire.The front-month Dutch TTF contract was down 2.26% to 46.400 euros ($54.03) per megawatt hour, while the UK NBP front-month contract fell 2.32% to 112.650 British pence ($1.51) per therm.On Tuesday, Iran's Foreign Ministry condemned the latest US strikes as "an act of bad faith" and "a definitive violation of the ceasefire," but it did not pull out of peace talks being mediated by Pakistan and Qatar.In a Truth Social post on Tuesday, US President Donald Trump said that Iran's enriched uranium would either be "immediately turned over to the United States to be brought home and destroyed," or destroyed in place, "in conjunction and coordination" with Iran.Tehran, however, has not agreed to this yet, with a senior official telling Reuters earlier this week that the nuclear issue was not part of the preliminary agreement with the US.Meanwhile, the Strait of Hormuz, through which one-fifth of global LNG flowed before the war, remained effectively closed for the 13th week running, with just two vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.This has become a significant concern for European buyers, according to Daniel Hynes, a senior commodity strategist at ANZ, as the Strait's protracted closure has forced Asian buyers to procure supply from LNG spot markets.At the same time, European markets are grappling with low inventory levels, at just 38.52% of capacity, compared to 46.31% during the corresponding period a year ago, according to data from Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 52.5%, according to the Swiss Federal Office of Energy.This comes at a critical juncture for the region, as it experiences "record-breaking heatwaves" with a heat dome developing over the continent, according to Severe-Weather EU. That means gas-fired power stations will need more fuel to meet demand from air conditioner use.

Market Chatter: Draft Peace Deal Proposes Iran Restoring Hormuz Traffic to Pre-War Levels in 1 Month

Related Articles

Iran Draft Peace Deal Includes Reopening of Hormuz Strait, Normalized Shipping Traffic Within a Month, US Military Forces Withdrawal, Al Jazeera Reports, Citing Iran State TV

India-bound Adnoc LNG Tanker Crosses Hormuz Strait, Bloomberg Analysis Shows

EMEA Natural Gas Update: Futures Slide as Peace Process Survives Renewed US Strikes

Related Articles

Oil & Energy7d ago
Iran Draft Peace Deal Includes Reopening of Hormuz Strait, Normalized Shipping Traffic Within a Month, US Military Forces Withdrawal, Al Jazeera Reports, Citing Iran State TV

Oil & Energy7d ago
India-bound Adnoc LNG Tanker Crosses Hormuz Strait, Bloomberg Analysis Shows
An India-bound tanker laden with liquefied natural gas from state-owned UAE energy giant Abu Dhabi National Oil Company has crossed the Strait of Hormuz, according to a Bloomberg analysis of ship-tracking data published Wednesday.This is in addition to the recent transit of at least two non-Iranian oil supertankers through the crucial waterway, which is responsible for almost 20% of the global energy flows.The Hormuz Strait has been effectively shut for LNG traffic since the start of the Iran war on Feb. 28, cutting off almost one-fifth of the global supply of the super-chilled gas, the report said.Adnoc has also shipped three other cargoes from the Persian Gulf on tankers, with the last of these detected in western India, the report said.The latest shipments are a fraction of pre-war volumes when about three LNG tankers, primarily carrying fuel from top producer Qatar, exited the Hormuz Strait every day, the report said.In response to anquery, an Adnoc spokesperson said the company does not comment on the position, movements, or routing of its vessels as a matter of policy.

Oil & Energy7d ago
EMEA Natural Gas Update: Futures Slide as Peace Process Survives Renewed US Strikes
European natural gas futures were down on Wednesday as peace talks appeared to remain on track despite US strikes against Iran earlier this week during a ceasefire.The front-month Dutch TTF contract was down 2.26% to 46.400 euros ($54.03) per megawatt hour, while the UK NBP front-month contract fell 2.32% to 112.650 British pence ($1.51) per therm.On Tuesday, Iran's Foreign Ministry condemned the latest US strikes as "an act of bad faith" and "a definitive violation of the ceasefire," but it did not pull out of peace talks being mediated by Pakistan and Qatar.In a Truth Social post on Tuesday, US President Donald Trump said that Iran's enriched uranium would either be "immediately turned over to the United States to be brought home and destroyed," or destroyed in place, "in conjunction and coordination" with Iran.Tehran, however, has not agreed to this yet, with a senior official telling Reuters earlier this week that the nuclear issue was not part of the preliminary agreement with the US.Meanwhile, the Strait of Hormuz, through which one-fifth of global LNG flowed before the war, remained effectively closed for the 13th week running, with just two vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.This has become a significant concern for European buyers, according to Daniel Hynes, a senior commodity strategist at ANZ, as the Strait's protracted closure has forced Asian buyers to procure supply from LNG spot markets.At the same time, European markets are grappling with low inventory levels, at just 38.52% of capacity, compared to 46.31% during the corresponding period a year ago, according to data from Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 52.5%, according to the Swiss Federal Office of Energy.This comes at a critical juncture for the region, as it experiences "record-breaking heatwaves" with a heat dome developing over the continent, according to Severe-Weather EU. That means gas-fired power stations will need more fuel to meet demand from air conditioner use.