International oil prices have fallen to their lowest levels since August after United States President Donald Trump declared the conflict with Iran effectively over, while Tehran offered through diplomatic back channels to reopen the Strait of Hormuz on conditions.

Iran’s offers link reopening the strait to sanctions relief and the lifting of an American naval blockade. They set out a proposed exchange, rather than an unconditional commitment to restore access.

The developments mark a shift towards a possible diplomatic resolution, but Trump’s assessment and Tehran’s terms are distinct. His declaration characterises the state of the conflict; Iran’s proposals concern the concessions it seeks in return for reopening Hormuz.

The fall in oil prices has therefore come alongside diplomatic signals, rather than an established agreement on those terms. Whether sanctions relief and an end to the blockade will be agreed remains unresolved.