The U.S. and Iran could reach a deal on Tuesday or Wednesday to reopen the Strait of Hormuz with freedom of movement for commercial ships, U.S. Treasury Secretary Scott Bessent said in an interview.
“We are in talks with the Iranians,” Bessent told CNBC’s “Squawk Box.” “There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.”
“It would be freedom of movement,” the Treasury Secretary said when asked whether Iran would be allowed to charge a toll.
U.S. crude oil futures fell about 3% to trade below $78 per barrel after his remarks. Bessent said he expects prices to fall further when hundreds of ships stuck in the Persian Gulf are able to exit.
“It’s not just energy. It’s fertilizer, it’s refined products, it is the various industrial gasses,” the Treasury Secretary said. “We could see a big relief trade as those prices go down.”
President Donald Trump said over the weekend that he called off a major attack on Iran to allow for negotiations to reopen Hormuz. Trump has in the past repeatedly teased a deal to resolve the conflict only for fighting with Tehran to escalate again.
The U.S. and Iran signed a memorandum of understanding on June 17 to reopen the strait. Ship traffic through Hormuz briefly rebounded before the deal collapsed because Washington and Tehran disagreed on how the strait should open.
Iran began attacking tankers that transited Hormuz along Oman’s coast under U.S. military protection. Washington launched more than a dozen waves of airstrikes and reimposed its naval blockade of Iran in retaliation.
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