Bessent says there may be deal Tuesday or Wednesday to open Strait of Hormuz with ‘freedom of movement’

Treasury Secretary Scott Bessent stated on CNBC’s “Squawk Box” that the U.S. and Iran might reach a deal by Tuesday or Wednesday to reopen the Strait of Hormuz and allow commercial ships freedom of movement. Bessent expressed optimism about a potential agreement during the interview. When asked if Iran would be permitted to charge a toll, Bessent affirmed that freedom of movement would be granted.

The U.S. crude oil futures experienced a decline of approximately 3%, dipping below the $78 per barrel mark following his announcement. Bessent predicted that prices would continue to fall once hundreds of ships currently trapped in the Persian Gulf are able to exit. The Treasury secretary emphasized that the relief would extend beyond energy, mentioning the release of fertilizer, refined products, and industrial gases.

President Donald Trump had previously called off a major attack on Iran to facilitate negotiations for the reopening of Hormuz. Although the U.S. and Iran signed a memorandum of understanding on June 17 to reopen the strait, the deal fell through due to disagreements over the route ships could take to transit the strait. Iran demanded that vessels navigate through its territorial waters when utilizing the strait. In retaliation, the U.S. launched multiple airstrikes and reinstated its naval blockade on Iran.