Trump Says Iran Deal Signing Sunday, Hormuz to Reopen

President Donald Trump said Saturday that an agreement with Iran will be signed on Sunday, with the Strait of Hormuz reopening immediately afterward. The announcement came in a post on Truth Social. Iran's Foreign Ministry contradicted the claim, according to state media reports, saying the deal would not be signed on Sunday.

The Strait of Hormuz handles about a fifth of the world's oil shipments. Any reopening would ease supply constraints that have kept crude prices elevated this year, traders said. A signed agreement would also lower geopolitical risk premiums embedded in energy stocks and shipping rates.

Trump wrote on Truth Social: "The deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is open to all." The post offered no details on the agreement's terms or which parties are involved. Iran's denial raised questions about whether the two sides have resolved their differences over shipping rights and sanctions relief.

Oil prices are coming off a volatile week. West Texas Intermediate crude settled near $72 a barrel on Friday, up about 4% from a week earlier. Brent crude held above $76. The Strait's closure would have forced tankers to take longer routes, adding costs and delay.

Energy companies with exposure to Gulf shipping lanes would benefit most from a reopening. Exxon Mobil and Chevron, along with refiners on the U.S. Gulf Coast that import Middle Eastern crude, would see lower input costs, analysts at several brokerages said. Conversely, tanker operators that have profited from longer hauls could face headwinds.

The conflicting statements left the market guessing ahead of Sunday's expected signing. Traders said volume was thin into the weekend, with many participants waiting for definitive confirmation from both governments.