Iran Sets 7-Day Timetable for Hormuz Reopening at UNGA, Oil Prices Drop

• Oil prices drop as Iran signals seven-day timeframe for possible Hormuz reopening at UNGA
• Market optimism rises with prospects for de-escalation and resumed U.S.-Iran negotiations

On September 25, 2026, The Independent reported that Iran announced at the United Nations General Assembly it would reopen the Strait of Hormuz in seven days if the United States fully returns to commitments outlined in the Islamabad Memorandum of Understanding signed in June 2026. Iranian Foreign Minister Abbas Araghchi specified that reopening the strategic waterway depends on complete U.S. compliance with the Islamabad MOU, including lifting the naval blockade, withdrawing military forces surrounding Iran, ending sanctions, releasing frozen Iranian assets, halting ongoing military operations, and permitting temporary toll-free passage through the Strait.

Negotiators are reviewing a phased arrangement that ties lifting the U.S. blockade and unfreezing Iranian assets to reopening the waterway. Shipping Telegraph noted Iran and Oman have finalized new maritime entry and exit routes, pending submission of final documents to the International Maritime Organization for regulatory assessment. Iran emphasized that its agreement with Oman does not guarantee unconditional reopening; the process remains dependent on full U.S. compliance with Islamabad terms.

Oil markets responded quickly to the announcement. Brent crude futures for November delivery fell 1% to $105.56 per barrel, while West Texas Intermediate dropped 1.8% to $92.94 per barrel, as reported by The Independent. The decline reflected market optimism about potential de-escalation and renewed U.S.-Iran negotiations.