US and Iran edge toward peace deal as Hormuz remains closed
Updated
Updated · CBS New York · May 7
US and Iran edge toward peace deal as Hormuz remains closed
9 articles · Updated · CBS New York · May 7
Lloyd's List said no ships had transited since 4 May, while Iran created a new authority to approve passage and collect tolls through the Strait of Hormuz.
Trump said the war could end quickly but warned of higher-level strikes if Tehran rejects the latest US offer; Brent and WTI crude fell below $100 and stocks rose.
Iran's president acknowledged wartime economic strain, and Washington said Jones Act waivers helped move about 9 million barrels domestically as fuel-price concerns persisted.
Iran now controls the world’s most vital oil chokepoint. Will any deal actually restore free navigation in the strategic Strait?
The war has shaken global markets and U.S. alliances. Can a quick peace deal undo the long-term economic and diplomatic damage?
With Iran’s new leader wounded and unseen, who truly controls the country and the fate of the fragile peace deal?
US-Iran Negotiations at a Crossroads: Economic Fallout and the Fate of the Strait of Hormuz
Overview
As the fragile ceasefire between the US and Iran holds since April 2026, a critical 48-hour deadline in early May pressures both sides to finalize a 14-point agreement aimed at ending hostilities and reopening the Strait of Hormuz. Iran demands a sequenced deal prioritizing the strait's reopening with revenue guarantees, while the US insists on nuclear concessions. The strait's closure since February has caused a 15% global oil shortfall, driving prices up and fueling inflation, severely impacting energy-dependent countries like Pakistan and major Asian economies. Ongoing US-Israel military actions and Iran's retaliations deepen regional tensions, complicating negotiations. The outcome of talks will determine whether global energy flows resume or the conflict escalates further.