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

Market rumors say Iran has exempted Iraq, 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 lift plans within 24 hours.

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

A senior Iranian official warned that if the United States escalates its attacks on Iran, global energy routes beyond the Strait of Hormuz could be threatened.

Reuters, citing an SOMO document, said, “In view of the above circumstances, to ensure the continuity and stability of crude oil export operations, we urge your company to submit your lift plan within 24 hours so that your lift arrangements can be handled in a timely manner, including vessel nominations and contract loading quantities, and in full compliance with the agreed terms and conditions.” Since the war began, Iraq’s oil production has collapsed to about 800k barrels per day.

The document continued, “We hereby reaffirm that all loading terminals, including Basra Oil Terminal and its related facilities, remain fully operational. SOMO is fully prepared to carry out all contracted lift plans without restriction.”

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

Trump posted on social media Truth Social: “Tuesday, 8:00 P.M. Eastern Time! (8:00 P.M. Tuesday in U.S. Eastern Time!)”, implying it as the deadline for a final ultimatum—8:00 a.m. Wednesday in Hong Kong time.

Democrats said Trump’s latest threats against Iran are “delusional,” and warned that attacks on civilian facilities may constitute war crimes.

Worth noting is that with wartime conditions at a critical stage, any information could be enough to reverse the current market situation.

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