Treasury Secretary Scott Bessent told CNBC in a report published August 4 that the U.S. and Iran could reach a deal on Tuesday or Wednesday to reopen the Strait of Hormuz. Bessent stated that a potential agreement would allow for freedom of movement for commercial ships through the strait.
Bessent told CNBC's Squawk Box that the U.S. is currently in talks with the Iranians and suggested there is a chance for a deal that would move toward a more normalized position in the conflict. He indicated that the agreement would ensure freedom of movement and would not allow Iran to charge a toll.
Following the announcement, U.S. crude oil futures fell nearly 6% to trade below $76 per barrel. Bessent noted that prices could drop further once hundreds of ships currently stuck in the Persian Gulf are able to exit. He added that the relief would impact not only energy but also fertilizer, refined products, and various industrial gases.
Secretary of State Marco Rubio told reporters at the State Department that the U.S. is involved in talks between Oman and Iran regarding how more ships can pass through Hormuz in the short term. Rubio stated that while progress has been made in those talks, there is not yet finality and officials hope a resolution happens very shortly.
President Donald Trump stated on Saturday that he called off a major attack on Iran to allow for negotiations to reopen the strait. The U.S. and Iran previously signed a memorandum of understanding on June 17 to reopen the strait, but the deal collapsed due to disagreements between Washington and Tehran regarding which routes ships could use to transit the area.
Conflict in the region previously escalated after Iran began attacking tankers transiting Hormuz along Oman's coast under U.S. military protection. While Tehran desires vessels to sail through its territorial waters, Washington responded by launching more than a dozen waves of airstrikes and reimposing a naval blockade on Iran.
