Scott Bessent Signals Potential U.S.-Iran Deal to Reopen Strait of Hormuz as Stocks Rise
Treasury Secretary Scott Bessent indicated on Tuesday that a deal to reopen the Strait of Hormuz could be reached within the next 48 hours, potentially normalizing the conflict between the U.S. and Iran. The announcement provided a boost to the stock market, with the S&P 500 nearing a record high and the Dow Jones Industrial Average gaining over 1% as investors reacted to the news. Oil prices also declined following the comments, as the opening of the strait would allow for freer movement of commercial ships. While the administration announced the potential deal, reports on the progress of negotiations have been mixed. President Trump called off a planned strike on Iran to restart talks, though Iran has disputed the claims of active negotiations. Despite the diplomatic progress, the market remains focused on corporate earnings. Palantir Technologies and Caterpillar reported strong second-quarter results, with Palantir's commercial revenue jumping significantly. Investors are also awaiting SpaceX's first quarterly earnings report as a public company later today.