The White House on Wednesday dismissed a report circulated by Iranian state television that said a draft interim peace accord could normalize maritime traffic through the Strait of Hormuz within a month.
"This report from Iranian controlled media is not true and the MOU they 'released' is a complete fabrication," the White House said in a social media post. "Nobody should believe what Iranian state media is putting out."
The Iranian broadcast, attributed to IRIB News, asserted that the United States would lift a naval blockade on Iranian ports and remove American naval forces from waters surrounding Iran. The report also indicated that Iran and Oman would put in place a joint mechanism to oversee shipping in the strait.
Market reaction was swift. Brent crude fell nearly 4% and slipped under $96 a barrel after the IRIB News bulletin. Over the course of the week, oil prices have fallen by more than 7% as traders priced in the possibility of an agreement that might reduce geopolitical risk to shipping and energy flows.
The White House response framed the television report as inaccurate and reiterated that the document cited by Iranian state media was not genuine. Beyond the denial and the media report's claims about port and naval movements, there are no further official confirmations or details provided in the public statements referenced in this coverage.
This article reports the competing public claims: a state-affiliated Iranian outlet released a draft memorandum of understanding describing steps to normalize shipping and withdraw American naval forces, while the U.S. administration countered that the report and the document are fabrications. The immediate market effect was a notable drop in Brent crude prices as traders reacted to the evolving accounts.
Summary
The U.S. government has denied an Iranian state television report that described a draft interim agreement to reopen and normalize traffic through the Strait of Hormuz within a month, calling the released memorandum of understanding a fabrication. The disputed report said the U.S. would lift a naval blockade on Iranian ports and withdraw naval forces from nearby waters, and that Iran and Oman would create a mechanism to manage shipping. Following the report, Brent crude dropped nearly 4% to below $96 a barrel, contributing to a weekly decline in oil prices of more than 7% as traders responded to the prospect of a possible deal.