U.S. rejects Tehran memorandum revival as Hormuz traffic remains subdued

  • U.S. administration rejects regional efforts to revive the June memorandum with Tehran
  • Oil rose above $88 a barrel as Hormuz supply-disruption concerns weighed on markets
  • U.S. officials report mine-clearing and escorted traffic, while shipping remains below normal and a tanker was struck by an unidentified projectile

The U.S. administration has told regional mediators it will not revive the memorandum of understanding signed with Tehran on June 17, effectively ending prospects for the agreement as Iran links reopening the Strait of Hormuz to Washington’s return to the deal and an end to what it calls obstruction. U.S. officials say escorts, air protection, strikes and mine-clearing have reduced Iran’s control over the waterway, but traffic estimates remain disputed and periodic attacks continue. Oil rose above $88 a barrel after the U.S. decision, while Washington launched Operation Economic Pariah against approximately 60 Iran-linked entities and broadened secondary sanctions across five sectors.

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