Bessent says there may be deal Tuesday or Wednesday to open Strait of Hormuz with 'freedom of movement'
"We are in talks with the Iranians," the Treasury secretary told CNBC's "Squawk Box."
Treasury Secretary Scott Bessent disclosed on CNBC's "Squawk Box" that the U.S. and Iran might agree on reopening the Strait of Hormuz by Tuesday or Wednesday, granting commercial vessels freedom of navigation. "We're engaged in discussions with the Iranians," Bessent informed CNBC. "There is a possibility we could finalize a deal today or tomorrow to ease tensions," he added.
Bessent clarified that Iran would not require a toll to pass through the strait. The U.S. crude oil futures experienced a decline of around 3%, trading below the $78 mark following these remarks. Bessent anticipated further price reductions as hundreds of vessels trapped in the Persian Gulf would be able to exit the region. "It's not just energy – it's fertilizer, refined products, and various industrial gases," Bessent stated.
"A significant relief in trade could be observed as these prices decrease." In a previous statement, President Donald Trump announced on Saturday that he had canceled a significant attack on Iran to facilitate negotiations for the reopening of Hormuz. Despite Trump's promise of a deal to end the conflict, tensions between the U.S. and Iran have frequently escalated once again.
The U.S. and Iran signed a memorandum of understanding in June 17 to reopen the strait. However, the deal was short-lived due to disagreements on the exact route for ships to transit through the Strait. Iran has been targeting tankers navigating Hormuz under the protection of U.S. military forces. Tehran demands that vessels traverse its territorial waters while using the strait. In response, the U.S. initiated a series of airstrikes and reinstated its naval blockade on Iran.
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