US denies Iran report on draft peace deal to reopen Hormuz

The US denied an Iranian state television report on a draft interim peace deal that said maritime traffic through the Strait of Hormuz could return to normal within a month of it coming into effect.

“This report from Iranian-controlled media is not true and the MOU they ‘released’ is a complete fabrication,” the White House said in a social media post on Wednesday. “Nobody should believe what Iranian state media is putting out.”

Oil had dropped on the Iranian report, with Brent falling almost 4% to below $96 a barrel. It’s declined more than 7% this week as traders become increasingly more optimistic that there will be an agreement.

Other key points reported by Iran’s IRIB News included the US lifting its naval blockade on Iranian ports and the American navy leaving the waters surrounding Iran.

The draft also said Iran and Oman will have a mechanism in place to oversee shipping in the strait. That’s one of the most contentious issues holding up a deal, with the US saying vessels must be allowed free passage. Oman has not commented in recent weeks on Iran saying the two are in discussions about managing the strait.