US Treasury Secretary Scott Bessent stated on Tuesday that a deal with Iran to reopen the Strait of Hormuz could be reached "today or tomorrow," echoing comments made by President Donald Trump. This news caused oil prices to fall sharply, with Brent crude dropping over 6% to below $79.00 per barrel, and West Texas Intermediate futures also declining by 5.7% before recovering slightly on Wednesday. US Central Command confirmed the southern route of the Strait of Hormuz remained open and free, assisting over 1,000 vessels, despite "unwarranted" Iranian aggression.
President Trump, while in California, mentioned that a deal to reopen the Strait of Hormuz could happen "tomorrow or the next day" and that negotiators had a "very good day." He also delivered a stern warning to Iran, stating that the strait would open "very soon" or Iran would "get hit very hard." Secretary of State Marco Rubio confirmed the US was involved in negotiations between Oman and Iran regarding increased traffic through the Strait of Hormuz.
Despite the optimistic US statements, Iran's foreign ministry denied any negotiations with Washington, although Trump insisted they were occurring. A senior Trump administration official indicated that an agreement to restore shipping through the Strait could be reached as soon as Tuesday or Wednesday. This comes as Iran has sought to control the strait and impose tolls, a stance fiercely opposed by the US, which views the waterway as critical for global oil and gas supplies. The discussions aim to resolve a five-month conflict that has disrupted shipping.
