Washington, DC [US], June 23 : US President Donald Trump emphasised that "respect" from Tehran will be the deciding factor in maintaining peace following the conclusion of the Iran-Israel war, while voicing optimism that the full reopening of the Strait of Hormuz will trigger "an oil gusher".
"As long as they respect us, I don't want to use the word fear because that's an inappropriate word, but as long as they respect us, we're not going to have any trouble," Trump told reporters at his Oval Office on Monday.
The vital shipping lane was effectively shut down by Iran following joint US-Israel strikes on 28 February, a development that caused fuel prices to surge well beyond the immediate region.
Although an interim agreement was reached to halt hostilities and reopen the passage, the primary route remains blocked by mines, despite dozens of vessels successfully transiting the area over the weekend.
Mohammad Bagher Ghalibaf, the Iranian parliamentary speaker and lead negotiator, insisted on Monday that the Strait of Hormuz will be managed by Iran, but in accordance with international laws.
"Hopefully, we can activate the strait again, in terms of passage, and bring prosperity back to the regional and global economy," he told Iranian state media on the plane on his way back from Switzerland.
Ghalibaf and Foreign Minister Abbas Araghchi touched down in Oman on Monday night, where they held discussions with Omani Foreign Minister Badr al Busaidi regarding peace efforts and the security of navigation through the strait.
As part of the interim deal, the US Treasury issued a 60-day license on Monday to waive sanctions on Iranian oil.
Significantly, the license allows Iranian oil to be imported into the US, which has not imported significant amounts of Iranian oil since the 1990s.
Tanker activity has gradually increased in the strait. Data from analytics firm Kpler recorded 71 confirmed transits over the weekend, peaking at 35 crossings on Saturday, compared to the pre-war daily average of 100 to 130 vessels.
To circumvent the mined central channel, ships are opting for the narrower northern route through Iranian waters or the southern path through Omani waters.
Market reactions were reflected in commodity prices, with Brent crude falling 3.2 per cent to USD 77.52 per barrel, edging closer to pre-war levels of approximately USD 70.
Simultaneously, benchmark US crude oil dropped 2.6 per cent to USD 73.86 per barrel.