The United States has suspended its naval escort operations in the Strait of Hormuz as diplomatic negotiations with Iran progress. This move comes amid ongoing tensions following the Iran-Iraq war, which began in 2026 after U.S. and Israeli airstrikes on Iran. The strategic waterway, crucial for global oil and LNG shipments, has been a focal point of conflict. A temporary ceasefire and resumed talks, including Iran's 14-point proposal, have led to this de-escalatory measure, though military alertness remains. Market reactions to the U.S. decision show mixed sentiments. The probability of normalizing Strait traffic by May 15 has slightly decreased, while the likelihood of Trump announcing an end to the blockade has increased. The Bab el-Mandeb Strait market remains unaffected by these developments. Observers are closely monitoring statements from U.S. and Iranian officials, as well as reactions from international maritime organizations, for further insights into the situation.