Peace treaty
** US and Iranian officials said they had reached an agreement to end their war and reopen the Strait of Hormuz. The preliminary pact sent oil prices falling but leaves the fate of Tehran’s nuclear program to further negotiations.
Oil to flow
** “The Deal with the Islamic Republic of Iran is now complete,” President Trump wrote on Truth Social, “I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
Who won?
** The initial agreement between the US and Iran reached on Sunday has already faced hurdles, amid Tehran’s claims that it aims to control maritime traffic through the Strait of Hormuz as the war’s victor, and Israel insisting that it would hold onto land seized in Lebanon as it battles Hezbollah.
Strait alternatives
Saudi Arabia and Turkey signed agreements for a rail line that could eventually extend into Oman and serve as a way around the strait. Meanwhile, the United Arab Emirates (UAE) and Iraq are looking to expedite pipeline projects. CNBC reported that the Iraqi project would triple existing exports from 220,000 barrels per day to 770,000.
US Energy
** Two gas-fired power plants that were funded in part through Texas’ $10 billion fund to spur more gas generation are now operating and sending electricity to the grid, but critics point out they’re only operating during times of high-power demand.
** A new analysis from the Federal Reserve Bank of Dallas suggests uncertainty about spiking oil prices will likely prevent Texas’ oil industry from moving to significantly increase production.
** Republican Louisiana Gov. Jeff Landry signs legislation banning lawsuits against oil and gas companies over the effects of climate change.
** Democratic Kentucky Gov. Andy Beshear promises data centers will have to pay for 100% of their own energy, but environmental advocates warn that’s actually handled by utilities and state regulators.
** A federal judge orders the U.S. Department of Energy to reinstate more than $82 million in grants for clean energy projects in Connecticut, New York, and other states that voted for former Vice President Kamala Harris in 2024.
