The U.S. and Iran could reach a deal on Tuesday or Wednesday to reopen the Strait of Hormuz with freedom of movement for commercial ships, Treasury Secretary Scott Bessent said in an interview.
“We are in talks with the Iranians,” Bessent told CNBC’s “Squawk Box.” “There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.”
The Treasury Secretary said the deal would allow freedom of movement in the strait when asked whether Iran would be allowed to charge a toll.
“It would be freedom of movement,” Bessent said. “Even though things are still a little dicey there over the past few days, we saw quite a few ships coming out even now.”
U.S. crude oil futures fell about 4% to trade below $77 per barrel after the secretary’s remarks. Bessent said he expects prices to fall further when Hormuz opens.
“There are hundreds if not 1,000 ships sitting in there and waiting to go out,” he said. “It’s not just energy. It’s fertilizer, it’s refined products, it is the various industrial gasses. We could see a big relief trade as those prices go down.”
President Donald Trump said over the weekend that he called off a major attack on Iran to allow for negotiations to reopen Hormuz. Trump has repeatedly indicated that a deal was close to resolve the conflict only for fighting with Tehran to escalate again.
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