Iran has agreed to partially reopen the Strait of Hormuz, allowing commercial shipping to pass through the vital waterway.
The route, which usually carries around 20 per cent of global oil supply, has been effectively blockaded for several weeks after Tehran threatened to attack maritime traffic in the area in a bid to intensify economic pressure on the US and Israel to end the current war.
Markets responded with steep increases in oil prices, from around $73 per barrel before the conflict to a high of nearly £120 earlier this week.
On Tuesday, though, Iran reportedly sent a note to the United Nations stating that it would allow “non-hostile vessels” to pass freely through the strait, according to the Financial Times.
That development, along with US President Trump’s claim of negotiations between the two sides, eased inflationary pressures on oil and saw prices drop back under $100 per barrel as of Wednesday morning.
Meanwhile, speaking on Tuesday, Trump told reporters that “regime change” had already been completed in Iran.
"We really had regime change. This is a change in the regime, because the leaders are all different,” he said.
He also said that Washington is "talking to the right people" in Iran as both sides continue to give conflicting accounts of reported peace talks.
This followed his claims on Monday that Iran had already agreed to give up its nuclear enrichment activity and to commit to never building a nuclear weapon, adding that "very good and productive conversations" were ongoing.
This was denied by Tehran, which said its officials had not spoken to any US delegation.
Per Channel 12, the US has drawn up a plan which would see "the declaration of a month-long ceasefire period, during which the sides would negotiate a 15-point agreement".
These 15 points would include a complete dismantling of Iran's nuclear facilities and restrictions on ballistic missiles in return for sanctions relief.
However, they would also reportedly see the US provide Iran with assistance for a civilian nuclear programme for energy generation.
Despite the developments, Washington has still confirmed the deployment of extra troops to the region, leaving open the possibility of American boots on the ground.
Around 3,000 troops from the 82nd Airborne Division have been dispatched to support between 3,000 and 5,000 marines already deployed from the Pacific.
In total, more than 50,000 troops have been stationed under the Central Command (Centcom) in the region.
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