(2nd LD) U.S., Iran could reach deal this week to reopen Strait of Hormuz: Bessent

U.S. Treasury Secretary Scott Bessent stated on Tuesday that the United States and Iran may reach a deal this week to reopen the strategically important Strait of Hormuz. Bessent emphasized that the agreement would primarily focus on ensuring freedom of movement through the critical waterway, which is crucial for shipping oil, natural gas, fertilizers, and other essential commodities. He made these remarks in a CNBC interview, noting there is a possibility of reaching a deal today or tomorrow.

Bessent clarified that should hundreds of ships currently stranded in the Persian Gulf due to the ongoing Middle East conflict be allowed to exit, oil prices could decline further. He elaborated that this deal would not only benefit the energy sector but also other industries reliant on the strait, such as fertilizer and industrial gas production.

Secretary of State Marco Rubio echoed Bessent's remarks at a press availability at the State Department, highlighting the progress in talks between Iran, Oman, and the U.S. regarding the strait's reopening. Rubio mentioned that the negotiations aim to facilitate safe passage for ships in the short term while the broader talks on Iran's nuclear program progress towards a long-term resolution.

President Donald Trump had previously announced that Washington and Tehran were engaged in discussions to reopen the Strait of Hormuz by Tuesday, describing the opening as the initial phase and the negotiations over Iran's nuclear program as the subsequent phase.