Treasury Secretary Scott Bessent indicates a potential deal to open the Strait of Hormuz could occur as early as this week.
Oil prices fell sharply on Tuesday as Treasury Secretary Scott Bessent indicated that a deal to open the Strait of Hormuz may be reached as early as this week. Brent crude fell 5.3% to $79.36 per barrel, while West Texas Intermediate futures dropped 5.7% to settle at $75.77. Bessent stated that the U.S. is in talks with Iran to achieve freedom of movement in the strait, potentially moving toward a more normalized position in the conflict. While Tehran is considering allowing European countries to clear mines, Iran remains firm on wanting control of the strait. President Trump said over the weekend that he called off a major attack on Iran to facilitate these negotiations. However, analysts suggest that while a deal is possible, oil exports through the strait are unlikely to surge significantly because current flows are already aligned with production recovery levels.