President Donald Trump and US Treasury Secretary Scott Bessent indicated that a deal to reopen the Strait of Hormuz could be finalized "today or tomorrow," driving oil prices sharply lower. Brent crude, the international benchmark, fell by over 6% to below $79.00 per barrel, with some sources reporting a 1.2% drop to $78.43. Stocks, in contrast, soared to record levels as investors anticipated an end to the five-month conflict and the resumption of vital shipping through the strait.
While US officials project an imminent agreement, Iranian and Omani sources presented a more nuanced picture. Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, stated that a joint declaration with Oman outlining key considerations and agreed points was in its final review stage, if not obstructed. Reuters sources also pushed back on Trump's assertions, indicating that negotiations were ongoing, with a senior Iranian source emphasizing that a deal was not yet finalized and "the devil is in the details."
The proposed deal, according to Axios and regional officials cited by the Associated Press, would involve ships entering the Persian Gulf through an Iranian-controlled northern route and exiting via an Omani-controlled southern route. While the US insists on complete freedom of navigation without Iranian tolls, Iran is seeking service fees of between 5% and 7% of cargo prices, with Oman discussing smaller fees of around 3%. A temporary arrangement of 60 days without transit fees has also been reported. The potential for Iran to gain some control over inbound shipping is seen by some as a significant concession.
