Tankers exit Hormuz as Trump, Vance talk up Iran deal prospects
Trump said on Tuesday the war could end "very quickly," while Vance said progress had been made in talks with Tehran
Two Chinese oil tankers carrying around 4 million barrels of crude exited the Strait of Hormuz on Wednesday, shipping data showed, as comments from US President Donald Trump and Vice President JD Vance raised hopes of a possible agreement to end the US-Israeli conflict with Iran.
Trump said on Tuesday the war could end "very quickly," while Vance said progress had been made in talks with Tehran.
"We're in a pretty good spot here," Vance told a White House press briefing.
Keep updated, follow The Business Standard's Google news channel
Trump said he had paused a planned resumption of hostilities after Tehran submitted a new proposal aimed at ending the conflict.
"I was an hour away from making the decision to go today," Trump told reporters at the White House on Tuesday.
He added that Iran's leaders were "begging for a deal" and warned that a new US attack could take place within days if no agreement was reached.
The United States has been seeking to end the conflict it launched alongside Israel nearly three months ago. Throughout the fighting, Trump has repeatedly said a deal with Tehran was close while also threatening major strikes if negotiations failed.
The conflict has disrupted global energy supplies, blocking hundreds of tankers from leaving the Gulf and damaging shipping and energy infrastructure across the region.
According to data from LSEG and Kpler, two Chinese supertankers carrying Iraqi crude passed through the Strait of Hormuz this month and exited the Gulf on Wednesday.
Oil prices fell after the latest comments from Washington and signs of movement in Gulf shipping. Brent crude dropped as low as $110.16 a barrel before recovering some losses.
"Investors are keen to gauge whether Washington and Tehran can actually find common ground and reach a peace agreement, with the US stance shifting daily," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Trump faces political pressure domestically to secure a deal that would fully reopen the Strait of Hormuz, a vital route for global oil shipments. US gasoline prices have remained elevated ahead of congressional elections in November.
Speaking at the White House, Vance acknowledged challenges in negotiations with Iran's leadership.
"It's not sometimes totally clear what the negotiating position of the team is," he said, adding that Washington was attempting to clarify its own red lines.
Vance also said preventing a regional nuclear arms race remained a key objective of US policy.
Ebrahim Azizi, head of the Iranian parliament's national security committee, said on X that Trump's decision to pause an attack reflected an understanding that any move against Iran would lead to "facing a decisive military response."
Iranian state media said Tehran's latest proposal included ending hostilities across the region, including in Lebanon, withdrawing US forces from areas near Iran, and compensation for damage caused by US-Israeli attacks.
According to Iran's IRNA news agency, Deputy Foreign Minister Kazem Gharibabadi said Tehran was also seeking the lifting of sanctions, the release of frozen funds and an end to the US naval blockade.
The terms outlined in Iranian media reports appeared broadly similar to a previous Iranian proposal that Trump rejected last week as "garbage."
A ceasefire reached in early April has largely held after months of US-Israeli bombing campaigns and Iranian retaliatory strikes. Thousands were killed in Iran during the conflict, while Israeli operations in Lebanon displaced hundreds of thousands of people, according to regional authorities.
Recent drone launches from Iraq toward Gulf states including Saudi Arabia and Kuwait have raised concerns about renewed escalation.
Trump and Israeli Prime Minister Benjamin Netanyahu have said their campaign aimed to curb Iran's support for regional militias, dismantle its nuclear programme and weaken its missile capabilities.
However, Iran retains stockpiles of highly enriched uranium as well as missile and drone capabilities, according to analysts and Western officials. Iran's clerical leadership has also remained in power despite internal unrest earlier this year.
