Iran agrees to reopen Strait of Hormuz, halting tolls and fighting

## Market Snapshot

Strait of Hormuz traffic by May is currently priced at 14.7% YES, significantly up from 2% just 24 hours ago. The Strait of Hormuz traffic by July 31 has increased to 71.5% YES from 44% over the same period. The Bab el-Mandeb Strait closure market remains largely unaffected, holding at 3.4% YES.

## Key Takeaways

– Markets suggest the agreement for Iran to reopen the Strait of Hormuz could lead to a return to normal traffic by the end of May. – The likelihood of normal traffic by July 31 appears to have increased significantly, indicating confidence in the agreement’s implementation. – The Bab el-Mandeb Strait market remains largely unchanged, suggesting the news is not relevant to this scenario.

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