The administration of U.S. President Donald Trump says ongoing negotiations with Iran could lead to an agreement that would allow the Strait of Hormuz to reopen for commercial shipping as early as Tuesday or Wednesday.
Speaking during CNBC’s Squawk Box on Tuesday, U.S. Treasury Secretary Scott Bessent confirmed that discussions with Iranian officials were underway and expressed optimism that both sides were close to a breakthrough.
“We are in talks with the Iranians,” Mr Bessent said. “There is a possibility we could reach an agreement today or tomorrow that would reopen the strait and help return the situation to a more normal state.”
Responding to questions about whether Iran would impose transit charges on commercial vessels using the strategic waterway, Mr Bessent said ships would enjoy unrestricted passage, describing the arrangement as one based on “freedom of movement.”
His comments came as U.S. crude oil prices dropped by almost three per cent to about $78 per barrel. According to Mr Bessent, prices could fall even further once commercial shipping resumes through the waterway, where hundreds of vessels have remained stranded due to tensions in the Middle East.
He noted that reopening the strait would ease pressure not only on global energy supplies but also on the transportation of fertilisers, refined petroleum products and industrial gases, adding that international markets could experience significant price relief.
Last Saturday, President Trump revealed that he had suspended plans for a major military strike against Iran to create room for negotiations aimed at reopening the vital maritime route.
Although representatives from Tehran and Washington signed a memorandum of understanding on June 17 intended to end the conflict, the agreement later collapsed after both sides failed to resolve differences over shipping arrangements.
Iran shut down the Strait of Hormuz, accusing the United States of maintaining a blockade on its ports. Since then, both countries have continued exchanging military strikes while diplomatic efforts to restore navigation through the strategic passage continue.