First LNG Tanker Clears Hormuz After US-Iran Deal

An LNG carrier successfully passed through the Strait of Hormuz early on Monday, the first tanker carrying energy products to clear the chokepoint since the US and Iran announced a deal to reopen the strait later this week.

The US and Iran late on Sunday announced a deal to reopen the Strait of Hormuz more than 100 days after its closure. The re-opening could happen as soon as an agreement is signed on Friday. News of the deal sent oil prices tumbling early on Monday, with Brent crude down to $82 per barrel and WTI crude falling below $80 a barrel. While tanker owners and operators remain cautious, the passage of the first LNG tanker signals a potential easing of supply disruptions that have roiled global energy markets. For fuel traders, the reopening of Hormuz is a critical development, as the strait handles about 20% of global oil and LNG flows. The deal reduces the risk premium embedded in crude prices and could lead to further downside if supply resumes smoothly. Check NowPrice's fuel page for the latest Brent and WTI pricing.

Looking ahead, traders will watch for the formal signing on Friday and any subsequent tanker traffic through the strait. A sustained reopening could pressure OPEC+ to adjust output quotas, as Iranian supply may return to the market. The Brent-WTI spread and crack spreads for refiners will also be key indicators of how quickly the market absorbs the additional supply.