US Treasury Secretary Scott Bessent indicated that an agreement with Iran to reopen the Strait of Hormuz could be reached "today or tomorrow," which led to a sharp decline in oil prices. Brent crude, the international benchmark, fell over six percent to below $79.00 per barrel, although it later rebounded slightly to $79.7 per barrel. West Texas Intermediate futures also dropped 5.7% before inching up 0.21% to $75.95.
While the US Central Command stated that the southern route of the Strait of Hormuz remained open, Secretary Bessent's comments signaled a potential broader agreement to normalize the situation in the waterway. US Secretary of State Marco Rubio confirmed US involvement in negotiations between Oman and Iran. President Donald Trump also expressed confidence in a deal, stating that negotiators "had a very good day."
Despite the US optimism, Iran's foreign ministry denied direct negotiations with Washington. However, Iranian Foreign Ministry spokesman Esmaeil Baghaei reported "positive" progress in talks with Oman regarding the framework for vessel transit. Iran seeks to control the strait and potentially charge tolls, a shift from pre-war conditions, and desires control over ships entering the Gulf through Hormuz.
Mediators like Qatar confirmed ongoing diplomatic efforts, but no final agreement or timetable has been established. Iran and Oman are discussing mechanisms for safe commercial vessel movement, with Iran emphasizing its sovereignty and security interests. The proposed outbound route through Omani waters, with Omani clearance after Iranian notification, represents a compromise from Iran's earlier demand for two-way control. However, Iran's rejection of equal regional management remains a potential obstacle.
