Iran, May 20 : Two Chinese supertankers carrying Iraqi crude oil successfully exited the Strait of Hormuz on Wednesday, offering a strong signal that tensions in the Gulf region may be easing amid renewed momentum in US-Iran peace talks. Shipping data from LSEG and Kpler showed the vessels transported nearly four million barrels of crude through one of the world’s most critical energy chokepoints.
The development came after encouraging remarks from US President Donald Trump and Vice President JD Vance regarding ongoing negotiations with Tehran aimed at ending months of conflict involving the United States, Israel and Iran.
Trump stated that the war could conclude “very quickly” if diplomatic efforts continue to progress. He also revealed that he recently delayed a planned military escalation after receiving what he described as a fresh proposal from Tehran intended to halt hostilities.
Speaking at the White House, Trump said he had been “an hour away” from authorising another military move before deciding to pause operations. However, he warned that military action could resume within days if negotiations fail to deliver results.
Vice President Vance described the current situation as encouraging, saying Washington believes discussions are moving in a constructive direction despite complications within Iran’s political structure.
Oil Market Reacts to Diplomatic Signals
Global oil markets responded positively to the latest diplomatic developments. Brent crude prices slipped to nearly $110 per barrel during trading before recovering some losses later in the session. Investors interpreted the safe passage of tankers through Hormuz as an indication that regional supply routes may gradually stabilise after months of severe disruption.
Analysts noted that traders remain cautious because negotiations between Washington and Tehran continue to shift rapidly. Toshitaka Tazawa of Fujitomi Securities said markets are closely watching whether both sides can genuinely move toward a lasting settlement.
The Strait of Hormuz remains one of the most strategically important waterways in the world, handling a significant portion of global oil exports. The conflict in the Gulf has disrupted tanker movement, damaged energy infrastructure and created uncertainty across international commodity markets.
Pressure Mounts on Washington
The White House is facing growing domestic pressure to secure a diplomatic breakthrough that would fully reopen Gulf shipping routes and stabilise fuel prices. Rising gasoline costs in the United States have become a major political concern ahead of congressional elections scheduled later this year.
Trump’s approval ratings have also been affected by prolonged instability in energy markets and uncertainty surrounding the conflict. The administration has repeatedly argued that a negotiated agreement with Iran is close, while simultaneously warning Tehran of severe military consequences if talks collapse.
Tehran Presents New Conditions
Iranian officials indicated that Tehran’s latest proposal includes an end to military operations across multiple regional fronts, including Lebanon. Iranian state media also reported demands for the withdrawal of US forces stationed near Iranian territory, removal of economic sanctions and compensation for damages caused during the conflict.
Deputy Foreign Minister Kazem Gharibabadi reportedly said Iran is also seeking access to frozen financial assets and an end to restrictions affecting maritime trade.
Meanwhile, Ebrahim Azizi, chairman of Iran’s parliamentary national security committee, claimed the US decision to pause further attacks reflected concerns about a strong Iranian military response.
Despite renewed diplomatic engagement, observers noted that many of Tehran’s demands appear similar to proposals previously rejected by Washington.
Ceasefire Holds Amid Regional Tensions
Although a ceasefire agreed earlier this year has largely remained in place, sporadic security incidents continue across the region. Drone launches from Iraq targeting Gulf states such as Saudi Arabia and Kuwait have raised concerns about the possibility of renewed escalation involving Iran-backed groups.
The broader conflict has caused heavy casualties and displacement across several countries. Thousands were reportedly killed in Iran during the US-Israeli bombing campaign, while military operations linked to regional militias also intensified violence in Lebanon and neighbouring areas.
The United States and Israel maintain that their campaign aimed to weaken Iran’s missile network, limit its regional influence and curb its nuclear ambitions. However, analysts say Iran still retains significant military capabilities, including missile systems, drones and allied militias operating across the Middle East.
Despite economic pressure and military confrontation, Iran’s leadership has remained in control, showing little sign of internal collapse even after months of unrest and international pressure linked to the continuing US-Iran peace talks.