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Iran has assured U.S. there won't be tolls on Strait of Hormuz
CNBC • • nation
Key Points:
- President Donald Trump announced that Iran has informed him there will be no tolls, insurance costs, or charges for ships passing through the Strait of Hormuz, a key global oil transit route.
- Trump stated that no money has been given to Iran by the U.S., but funds controlled by the U.S. will be used to purchase food like corn, wheat, and soybeans for Iran, addressing their urgent food needs.
- The announcement follows an interim peace deal between the U.S. and Iran, which includes reopening the Strait of Hormuz toll-free for at least 60 days and ending hostilities, though some deal details remain contested.
- The Trump administration has faced criticism from Republican lawmakers who view the memorandum of understanding as a potentially problematic development.
- Oil prices dropped following the news, with Brent crude and West Texas Intermediate futures falling around 3%, reflecting eased tensions after recent conflicts involving Iran.
