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 could finalize a deal this week to reopen the Strait of Hormuz, emphasizing that the agreement would focus on restoring freedom of movement in the vital waterway. During a CNBC interview, Bessent disclosed that discussions with Iranian authorities were ongoing, expressing optimism about reaching a resolution by the end of the week.

He explained that the deal would facilitate the smooth transit of ships through the strait, which is a critical route for global trade, including oil, natural gas, fertilizer, and other commodities. Bessent assured that the reopening would be characterized by "freedom of movement," dispelling concerns about potential tolls imposed by Iran on transiting vessels.

He also indicated that once hundreds of stranded ships in the Persian Gulf gain the ability to leave, oil prices could experience a significant decrease. Bessent further elaborated that the implications of the deal extend beyond energy, touching upon sectors such as fertilizer, refined products, and various industrial gases. The secretary suggested that a substantial trade relief could ensue as prices decline.

On the same day, President Donald Trump announced that the U.S. and Iran were engaged in talks aimed at reopening the Strait of Hormuz by Tuesday. He described the strait's opening as the "first phase" of the negotiations and the discussions surrounding Iran's nuclear program as the "second phase."