Key insights
- The start of a 60-day negotiation period regarding the Strait of Hormuz and potential tolls, as announced by VP Vance, introduces geopolitical uncertainty. While the direct impact on US equities may be limited, any escalation or failure to resolve the issue could affect oil prices and global trade routes, potentially creating a bearish sentiment for energy-sensitive sectors and broader markets.
WASHINGTON, June 18 (Reuters) - U.S. Vice President JD Vance said the 60-day window laid out in a memorandum of understanding approved by President Donald Trump and Iranian leaders begins on Thursday.
"I would say the 60-day period officially started today," Vance told reporters at a White House briefing.
Asked what happens after the 60-day period in terms of governance of the Strait of Hormuz, Vance repeated the U.S. view that the major supply route for oil and gas shipments should be free of tolls. Iran effectively closed the waterway during the war.
"The final negotiations can set the terms of what comes afterwards," Vance said.
The interim pact signed by President Donald Trump and Iranian leaders kicked the hardest issuesdown the road to the next phase of negotiations, with no guarantee they will ever be resolved.
Most analysts are skeptical the two sides can forge a final settlement within the 60-day window laid out in the memorandum of understanding.
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