Treasury Secretary Scott Bessent says the U.S. and Iran may reach a deal to reopen the Strait of Hormuz by Wednesday.
Treasury Secretary Scott Bessent stated that the U.S. and Iran could reach an agreement by Tuesday or Wednesday to restore freedom of movement for commercial ships in the Strait of Hormuz. The deal would allow vessels to transit without Iran charging a toll, potentially easing tensions in the region. Following these remarks, U.S. crude oil futures fell approximately 3% to trade below $78 per barrel. Bessent noted that the reopening of the strait will impact more than just energy, affecting prices for fertilizer, refined products, and industrial gases. President Trump called off a major attack on Iran on Saturday to facilitate these negotiations. While a previous memorandum of understanding signed in June was successful briefly, it collapsed due to disagreements over specific transit routes. The administration is currently working to resolve the conflict and move toward a more normalized position with Tehran.