US officials discuss potential Iran nuclear deal with Chinese supertankers departure

Two Chinese oil tankers have departed the Strait of Hormuz, carrying approximately 4 million barrels of crude. The vessels, Yuan Gui Yang and Ocean Lily, had been waiting in the Gulf for over two months before leaving the waterway.

According to shipping data from LSEG and Kpler, the tankers loaded significant amounts of crude oil prior to their departure. Yuan Gui Yang loaded 2 million barrels of Iraqi Basrah crude on February 27, while Ocean Lily loaded 1 million barrels each of Qatari al-Shaheen and Iraqi Basrah crude between late February and early March.

The exit of the tankers from the Strait comes as US President Trump and Vice President JD Vance have expressed optimism about a potential deal to end the US-Israel war on Iran. Trump stated that the war will end “very quickly” and “hopefully in a very nice manner,” while Vance noted that Tehran-Washington negotiations are “in a pretty good spot here.”

US Vice President JD Vance also mentioned that there is “a lot of back-and-forth, a lot of good progress being made” in the negotiations. Trump had previously threatened military action against Iran, giving the country “two to three days” to make a deal.

Oil prices briefly decreased amid the positive comments from the White House, with Brent crude falling to $110.16 a barrel. However, experts warn that oil prices are likely to remain elevated even if Washington and Tehran reach a deal. Emril Jamil, a senior oil research analyst at LSEG, stated that “prices are likely to still exhibit some upside potential even if a deal is concluded.”

The economic and political fallout from the US blockade on the Strait of Hormuz has had significant effects globally. The United Nations has revised its global growth forecast to 2.5 percent this year, citing higher energy costs and weaker trade.

Source: Al Jazeera