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US-Iran MoU Triggers 4% Oil Drop; US Withdraws Tankers from Israel Amid Lebanon Strikes

US-Iran MoU permits immediate Iranian oil sales and mandates the lifting of the US naval blockade, driving Brent crude down 3.85% to $79.97 [S49, S151].

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Executive Summary

The US and Iran finalized a Memorandum of Understanding to end hostilities, triggering a 4.36% drop in WTI crude as sanctions waivers allow immediate Iranian oil exports. Israel, denied access to the MoU text, continues kinetic operations in southern Lebanon while the US begins withdrawing aerial refueling assets from Ben Gurion Airport. UAE markets face immediate recalibration as the Strait of Hormuz prepares for a phased reopening.

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24-Hour AI Outlook

Expect intense diplomatic friction between the US and Israel over the next 24 hours as Washington forces compliance with the MoU. Watch for potential spoiler attacks by Israeli forces in Lebanon or Syria designed to provoke Hezbollah or Iran before the Friday signing in Switzerland. Oil prices will likely stabilize near $78-$80 (Brent) as markets await physical confirmation of Iranian crude hitting the water.