The United States has lifted its naval blockade of Iran and commercial shipping has begun cautiously returning to the Strait of Hormuz after Washington and Tehran signed an interim agreement aimed at ending months of conflict in the Gulf.
Oil prices declined further on Thursday, following the release of the text of the interim agreement signed by the US and Iran.
The 14-point memorandum of understanding (MoU) signed by the United States and Iran aims to reopen the Strait of Hormuz while offering Tehran a pathway to significant economic relief. However, it defers many of the most contentious issues that fuelled the recent conflict to subsequent negotiations.
Oil prices further declined on Wednesday, extending the previous session's losses following the US-Iran interim peace deal which is expected to allow free passage for vessels through Strait of Hormuz.
The proposed $300 billion fund being discussed as part of the US-Iran interim peace agreement is intended to serve as a private investment vehicle to help drive economic development and reconstruction in Iran, according to a Reuters report.
The interim agreement between the US and Iran aimed at ending the Middle East conflict is expected to pave the way for Iran to resume oil exports immediately, according to US officials.
The United States and Iran have signed a preliminary agreement aimed at ending months of conflict and paving the way for the reopening of the Strait of Hormuz, sanctions relief for Tehran and a new round of negotiations on Iran's nuclear programme.
The United States and Iran have announced an agreement aimed at ending months of conflict and paving the way for the reopening of the Strait of Hormuz, a vital shipping route for global energy supplies, although key details of the accord remain unclear.
The United Arab Emirates has categorically denied reports published by certain international media outlets alleging the transfer of funds from the UAE to Iran, including allegations concerning $3 billion.
The US and Iran have signaled that an agreement to end their war was close, with a senior US administration official saying both sides had agreed on a text and that Washington expects to sign an initial deal soon, said media reports. Hours after the White House statement on the deal, the US military had it had downed multiple Iranian drones near the Strait of Hormuz.
