New Delhi, June 18 -- Details of the memorandum of understanding between the U.S. and Iran expected to be signed later this wee leaves plenty of room for uncertainty. But oil traders remain optimistic that one way or another, the Strait of Hormuz will reopen and oil will resume its prewar flows.

While oil prices were wavering Wednesday after President Donald Trump threatened to resume bombing Iran if the deal falls through, both Brent crude and West Texas Intermediate are down about 10% since Friday's close, with both trading below $80 a barrel as of Wednesday afternoon.

The 14-point memo, disclosed by a senior administration official, says that the war will end permanently, the U.S. naval blockade against Iran will be lifted, and shipp...