NEW DELHI: A potential peace agreement between the United States and Iran could restore shipping traffic through the strategically vital Strait of Hormuz to pre-war levels within 30 days, according to reports carried by Iran’s semi-official Tasnim News Agency.

The proposed draft understanding reportedly includes the gradual lifting of naval restrictions in the Strait of Hormuz, one of the world’s most critical oil transit routes. Before the conflict erupted earlier this year, nearly 125 to 140 ships crossed the strait daily, but maritime movement declined sharply after tensions escalated between Iran, the US and Israel.

According to the reports, the agreement under discussion would remove the naval blockade within a month and partially release Iran’s frozen overseas assets during the initial phase of implementation. Iranian officials have maintained that unrestricted commercial transit would only resume if maritime restrictions imposed on Tehran are eased.

US Secretary of State Marco Rubio indicated that negotiations had made “significant progress,” though he cautioned that a final agreement had not yet been concluded. Meanwhile, US President Donald Trump said Washington and Tehran had “largely negotiated” the framework of a possible peace arrangement.

The developments triggered a sharp decline in global oil prices as investors anticipated the reopening of the Strait of Hormuz, which handles a substantial share of global crude oil and liquefied natural gas shipments. However, analysts warned that full restoration of shipping confidence and energy supply chains could still take several months even after a formal agreement.