Qatar’s Foreign Ministry spokesperson, Majed Al-Ansari, said the Iran-Oman discussions have become a key step toward restarting the wider diplomatic process. The talks between Tehran and Muscat are focused on arrangements for maritime traffic through the strategic waterway, which has seen a dramatic decline in shipping since the US-Iran war began.

He added that an agreement over Hormuz would make it significantly easier for mediators to bring Washington and Tehran back to the negotiating table. Qatar has previously stressed that the priority is to restore normal navigation through the strait and create the conditions necessary for a broader diplomatic agreement.

This comes as US-Iran negotiations remain stalled, with both sides claiming control over the strait. Iran has insisted that the reopening of the strait is linked to broader issues, while the US has made reopening the strategic waterway a central demand.

The prolonged stalemate will likely keep a lid on risk sentiment, as inflation risks remain skewed to the upside. However, once this risk gets removed from the equation, risk assets should see renewed upside momentum as inflation and Fed tightening concerns ease. 

This article was written by Giuseppe Dellamotta at investinglive.com.