US and Iran Agree on 60-Day Roadmap for Strait of Hormuz After Switzerland Talks

US Vice President JD Vance and Iranian officials concluded high-level talks in Switzerland on June 22, making 'encouraging progress' toward a 60-day roadmap that includes a direct communication line for the Strait of Hormuz and a de-confliction mechanism for Lebanon, according to AP News.

Despite the diplomatic breakthrough, ship traffic through the Strait remains severely restricted. Kpler data showed only five vessels passed through on June 21, down from 26 on June 20, with Iran having shut the waterway again on June 20 after accusing Israel of violating a ceasefire in Lebanon, Al Jazeera and CNA reported.

The agreed roadmap includes a communication line between the US and Iran aimed at avoiding incidents and ensuring safe passage for commercial vessels through the Strait of Hormuz for the 60-day period, The National explained. However, technical negotiations on mine-clearing operations and war-risk insurance continue, with the timeline for a full return to normal traffic facing significant logistical hurdles.

The market's resolution source will be IMF Portwatch, which tracks the seven-day moving average of transit calls for the Strait of Hormuz. The next step is a series of technical talks this week that could produce concrete measures such as a verified mine-clearance schedule or insurance guarantees, which would be needed to boost traffic volumes before the July 15 deadline.