Rouhani says region can benefit from security brought by US-Iran MOU

At least three Iran-flagged tankers carrying a total of about 5 million barrels of oil have sailed from Iran since Tehran reached an agreement with Washington, CNN reported on Thursday, citing analytics firm Kpler.

“We have identified at least three laden, Iran-flagged crude oil tankers that have moved past the Gulf of Oman–Arabian Sea US naval blockade boundary,” Kpler said. None of those vessels had sailed through the Strait of Hormuz, it added.

Another tanker carrying about 2 million barrels of crude appeared to be approaching the same boundary based on the latest available AIS data, Kpler said.

UN nuclear watchdog chief Rafael Grossi welcomed the memorandum between the United States and Iran, saying the next stage would be to turn it into concrete technical steps.

“It is good that the memorandum is there - now the technical work starts,” Grossi said on Thursday.

He said the International Atomic Energy Agency would now sit down with US and Iranian officials to begin formulating specific measures that would need to be taken.

An Iranian lawmaker said on Thursday that the United States “cannot be wiped off the earth,” describing a memorandum of understanding with Washington as something Iran needed.

Ahmad Bakhshayesh Ardestani, a member of Iran parliament’s national security and foreign policy committee, said the fact that Iran had been able to “raise its head” was itself a victory.

He said the MOU would likely be discussed and reviewed in parliament.

The Iran war’s impact on food prices could linger long after the Strait of Hormuz reopens, with Bloomberg tracing how higher fuel, fertilizer, freight and energy costs are feeding through supply chains from farms to bakeries.

The report tracked the production of a chocolate croissant made by a London bakery, showing how the US and Israeli attack on Iran in late February and the subsequent closure of the Strait of Hormuz sent shocks through global supply chains.

Bloomberg reported that the disruption pushed up prices for fuel, energy, fertilizer and other agricultural and industrial products. Even though the United States and Iran have agreed to an interim deal expected to reopen the strait, the effects are still moving through the food system.

Fertilizer was one of the clearest pressure points. By the time the interim deal was reached, more than 40 fertilizer-laden vessels were stuck in the Persian Gulf, according to tanker-tracking data compiled by Bloomberg and Kpler. Fertilizer flows through the Strait of Hormuz fell from about 600,000 tons a week in late February to 60,000 tons in early June.

The spike hit during the spring planting season, raising costs for farmers even though fertilizer prices have since fallen back toward prewar levels. A French farmer cited by Bloomberg said his off-road diesel costs had risen from €0.70 a liter before the war to €1.20, adding about €25,000 to annual expenses.

The pressure also moved through mills, exporters, truckers, bakeries and cafes. Bloomberg said dry-bulk freight rates have risen 22% since the start of the war, while logistics firms have imposed fuel surcharges after diesel prices jumped.

In Britain, 82% of food and drink businesses said they would have to raise prices because of the impact of the Iran war, according to a May report from the Food & Drink Federation cited by Bloomberg.

The federation’s chief economist, Liliana Danila, said that while the Strait of Hormuz is reopening, supply chains will take “another six months, at least” to normalize, and some energy infrastructure may take longer to repair. She said food manufacturers’ long-term contracts mean some price increases could take as long as a year to appear fully.

“Higher costs are now baked into the system,” she said.

Initial talks between the United States and Iran are planned at the Bürgenstock resort in Switzerland on Friday following the signing of a ceasefire agreement between Tehran and Washington, the Swiss government said on Thursday.

The Swiss foreign ministry said the US and Iran were expected to meet with mediators Pakistan and Qatar, as well as other involved countries, for initial negotiations on implementing the agreement.

“No further information is currently available regarding the schedule and details of this meeting,” the ministry said.