【US Stock Futures】Iraq reportedly approved passage through the Strait of Hormuz, oil prices retreat

Market chatter says Iran has granted Iraq an exemption, allowing it to transit the Strait of Hormuz without any restrictions. According to Reuters, Iraq’s State Oil Marketing Organization (SOMO) has asked its customers to submit their crude oil lifting plans within 24 hours.

Axios reports that mediators from Pakistan, Egypt, and Turkey are making final efforts to secure a 45-day ceasefire between the United States, Israel, and Iran.

A senior Iranian official warned that if the U.S. escalates its attacks on Iran, global energy routes beyond the Strait of Hormuz could be at risk.

Reuters cited an SOMO document that says, “Given the above circumstances, in order to ensure the continuity and stability of crude oil export operations, we urge your company to submit a lifting plan within 24 hours so that your lifting arrangements can be handled in a timely manner, including vessel nominations and contract loading quantities, and that it fully complies with the agreed terms and conditions.” Since the war began, Iraq’s oil production has collapsed to about 800,000 barrels per day.

The document continues, “We reiterate that all loading terminals, including the Basra oil terminal and its related facilities, remain fully operational. SOMO is fully prepared to execute all contract lifting plans without restriction.”

After opening higher, oil prices eased back. New York crude oil fell 0.4%, while Brent’s gain narrowed to 0.6%.

Trump posted on social media on Truth Social: “Tuesday, 8:00 P.M. Eastern Time! (Tuesday night at 8:00 p.m. ET!)” This implies that it is the deadline for an ultimatum—8:00 a.m. on Wednesday in Hong Kong time.

Democrats say Trump’s latest threats toward Iran are “delusional” and warn that attacking civilian infrastructure could constitute war crimes.

Worth noting is that with the situation in the theater of war in emergency, any news is enough to reverse the current market conditions.

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