Japan’s Kyodo News reported on the 22nd that a senior Iranian government official revealed Iran would reopen the Strait of Hormuz within seven days if the U.S. took measures to reduce military pressure. International oil prices immediately turned negative in response, with both Brent and West Texas Intermediate (WTI) falling by more than 1%.
The official told Kyodo News that this proposal had been conveyed to Washington through intermediaries.
Earlier on the 22nd, Brent crude had risen nearly 2% to $102.30 per barrel; however, following the news—which suggested a potential easing of tensions between the U.S. and Iran—it dropped as much as 1.65% to $98.68 per barrel. During trading on the 21st, it had also briefly dipped below the $100 mark.
WTI followed a similar trend on the 22nd but saw a steeper decline, falling as much as 2.5% to $93.36 per barrel. WTI futures had already closed below the $100 mark on the 21st, the first time since September 9.
Tehran plans to use the United Nations General Assembly, taking place in New York this week, to hold discussions with nations acting as intermediaries.
The official ruled out the possibility of a meeting between the Iranian president and U.S. President Donald Trump on the sidelines of the assembly but indicated that an agreement between the two sides remained possible.
He also emphasized that for diplomatic efforts to progress, Washington must demonstrate seriousness and determination.
The official stated that Iran is looking for signals from Washington indicating a readiness to return to the negotiating table and to take steps to end the U.S. military blockade of Iranian ports and halt military operations related to the Strait of Hormuz.