A report that’s getting some of the credit for the bounce in risk assets is from IRNA and says that Iran has drafted a protocol with Oman for traffic in the Strait of Hormuz.
Iran Deputy Foreign Minister for Legal and International Affairs confirmed the report but framed it more as housekeeping than some kind of war-ending effort. He said that even in peaceful conditions, traffic should be monitored.
“Of course, these requirements will not mean restrictions, but to facilitate and ensure safe passage and provide better services to ships that pass through this route,” he said.
The report says this is a post-war draft and aimed to prevent aggression in the future.
I think if you’re buying risk assets on this, that’s grasping at straws and the S&P 500 briefly touched positive but is now down 15 points. It’s been a very volatile day already.
Update: The report says Iran will set tolls for ships passing via Hormuz. That’s potentially better news.
This article was written by Adam Button at investinglive.com.