U.S. says Strait of Hormuz is 'free and open' as Bessent says deal with Iran is close

The U.S. military affirmed the Strait of Hormuz as accessible for all commercial vessels to pass through, following Treasury Secretary Scott Bessent's declaration that an Iran deal is nearing close. Central Command of the U.S. reported that the southern segment of the Strait of Hormuz remains unrestricted and unobstructed, having aided more than 1,000 vessels in navigating the waterway despite "unjustified" Iranian hostility.

This announcement occurs as oil prices dropped considerably on Tuesday, following comments by Treasury Secretary Bessent suggesting a potential deal to unlock the Strait of Hormuz within the week. "We are conducting discussions with the Iranians," Bessent conveyed to CNBC's "Squawk Box." "There is a likelihood we could finalize a deal today or tomorrow to open the Strait and move towards a more normalized status in this dispute."

The international oil benchmark, Brent, rose by 0.43% to $79.7 per barrel on Wednesday, after falling 5.3% the previous day. West Texas Intermediate futures also increased by 0.21% to trade at $75.95, following a decline of 5.7% the day before. A senior Middle East diplomat with knowledge of the Iran-Oman negotiations reported to MS NOW that significant pressure is being exerted on Oman by the U.S. and European nations to reach a provisional agreement with Iran to restore the Strait of Hormuz.

Another senior Pakistani government official confirmed to MS NOW that a document regarding the reopening of the Strait of Hormuz is "near finalization." This official, who preferred anonymity due to the topic's sensitivity, added that the discussions are taking place between Iran and Oman, mediated by Pakistan - with U.S. involvement occurring "indirectly."

Earlier on Tuesday, the White House and Pentagon had stated that U.S. forces possessed "ample" munitions, following reports that the U.S. military had utilized "essentially all" of its long-range precision missiles during the Iran conflict. Reuters revealed that the Army has exhausted most of its stockpile of Army Tactical Missile Systems and Precision Strike Missiles, while CNN reported that the U.S. military has used nearly 80% of its interceptors for its THAAD missile defense system, designed to protect against ballistic missile strikes.

In response, U.S. President Donald Trump asserted that Washington has "far more munitions than any other nation, and far more than it requires," also claiming that U.S. defense companies are "producing more munitions than ever before, including expanding their factories and equipment at record levels." White House deputy press secretary Anna Kelly affirmed that "the United States Military has more than enough munitions, ammo, and stockpiles to fulfill all of President Trump's strategic objectives and beyond, and Operation Epic Fury has demonstrated what occurs when you challenge the United States."