U.S. and Iran weigh earlier signing to reopen Hormuz

The United States and Iran are in talks to advance the signing of their memorandum of understanding from Friday to as early as Wednesday, according to a diplomat from one of the mediating countries and a second source familiar with the discussions. The change would shift the ceremony from an in-person event to a remote, electronic signing.

The acceleration matters because the portions of the deal governing the Strait of Hormuz would take effect immediately upon signature. That timing could reopen one of the world's critical oil chokepoints days earlier than previously expected. The diplomatic source said the earlier timetable is expressly intended to open the strait.

If the signing moves forward Wednesday, the United States is expected to release the full text of the agreement. That text has remained under wraps through weeks of negotiation, leaving markets and analysts to trade on headlines rather than contract language.

The Strait of Hormuz handles roughly a fifth of global oil trade. Any delay or disruption in that channel shows up in Brent spreads and shipping rates within hours. The difference between Friday and Wednesday is not symbolic when tanker queues and insurance premiums are adjusting in real time.

The shift to a remote signing suggests both sides see value in speed over ceremony. That preference—along with the mediators' willingness to compress the schedule—indicates the deal is far enough along that the optics of an in-person summit are less important than the operational benefit of early implementation.