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 revealed the possibility of a deal on Tuesday or Wednesday to reopen the Strait of Hormuz with freedom of movement for commercial vessels, according to CNBC's "Squawk Box." Bessent stated that the U.S. and Iran are engaged in talks with regards to this issue. He added that this could lead to a more normalized state in the ongoing conflict, with Iran potentially allowing ships to pass through without charging a toll.
The Secretary's remarks caused U.S. crude oil futures to decline approximately 3%, bringing them below $78 per barrel. Bessent anticipated further decline in prices upon the departure of hundreds of ships trapped in the Persian Gulf. The potential relief could extend beyond the energy sector, impacting areas like fertilizer, refined products, and industrial gasses.
President Donald Trump reportedly canceled a major attack on Iran in order to facilitate negotiations over the reopening of Hormuz. Despite a memorandum of understanding signed by both nations on June 17 to reopen the strait, the deal fell through due to differing views on the transit routes. Following this, Iran started targeting tankers navigating through Hormuz under the protection of U.S. military forces. In response, Washington conducted numerous airstrikes and reinstated its naval blockade on Iran.
Written by urgent.news from CNBC World's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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