US Treasury Secretary Scott Bessent said Washington and Tehran could reach a deal as early as Tuesday or Wednesday to reopen the Strait of Hormuz to commercial shipping. He said vessel traffic through the strait has continued despite the tensions, and expects an agreement to ease pressure on energy prices.
The United States and Iran could finalize a deal as early as Tuesday or Wednesday to reopen the Strait of Hormuz with freedom of movement for commercial ships, Treasury Secretary Scott Bessent said in an interview with CNBC's Squawk Box. Bessent told the network the two countries are in talks that could move the conflict toward a more normalized footing.
Bessent said negotiations over the waterway were progressing rapidly and that an agreement could be finalized within days. The remarks raised hopes that tensions in the Gulf could ease and reduce pressure on global energy markets, InvestingLive reported.
Despite the tensions, vessel traffic through the strait has continued, Bessent said, noting: "We saw quite a few ships coming out of Hormuz even now." He described conditions in the region as challenging, pointing to elevated geopolitical risk that has fueled volatility across oil and financial markets.
Bessent said he expects energy prices to settle down once an agreement is reached, unwinding some of the risk premium built into energy prices. He added that a resolution could spark a big rally in risk assets as oil prices fall, easing inflation pressure on investors and central banks.
Markets are also watching for developments from regional mediators, with any Hormuz agreement carrying implications for crude oil prices and inflation expectations.
Sources: CNBC (snippet-based), InvestingLive
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