President Trump says a deal to reopen the Strait of Hormuz could be reached within days, and Treasury Secretary Scott Bessent says talks with Iran are underway. Oil prices swung sharply on the news, while Washington also faces questions over depleted missile stockpiles from the five-month conflict.
President Donald Trump said Tuesday that an agreement to reopen the Strait of Hormuz could be reached within a day or two, telling reporters in California that negotiators had made significant progress in talks with Iran. Treasury Secretary Scott Bessent said Tuesday the two governments could finalize an agreement just as quickly.
According to CNBC, Bessent said: "We are in talks with the Iranians." He added there is a chance of a deal within a day to open the Strait and move the conflict toward a more normalized footing.
Oil rebounds on deal hopes
Brent crude, the international benchmark, climbed 1.3% Wednesday to $80.39 a barrel, after sliding 5.3% the day before. West Texas Intermediate futures rose 0.7% to $76.30, following a 5.7% drop in the prior session. The swings mark the latest move in crude oil markets tied to the conflict.
Southern shipping route already open, US military says
U.S. Central Command said the southern route of the Strait of Hormuz remains free and open, adding it has assisted more than 1,000 vessels transiting the waterway despite what it called unwarranted Iranian aggression. That route runs through Omani territorial waters rather than the corridor closer to Iran.
A senior Middle East diplomat told MS NOW that the United States and European countries are pressing Oman to accept a temporary agreement with Iran. A senior Pakistani official separately said a document on reopening the Strait is close to being finalized, with Pakistan mediating between Iran and Oman while Washington is involved indirectly.
Trump warns of a forceful response
Trump also said Tuesday the Strait would open very soon. He warned the U.S. military would respond if talks falter, adding Iran would face serious consequences should it back out of the agreement again.
The warning followed reports that U.S. forces had used nearly all of their long-range precision missiles during the conflict. Reuters reported the Army has depleted most of its stockpile of Army Tactical Missile Systems and Precision Strike Missiles.
CNN separately reported the military has exhausted nearly 80% of its interceptors for the THAAD missile defense system. The White House and Pentagon insisted Tuesday that U.S. forces have more than enough munitions despite the reported shortages.
Source: CNBC
Trading involves risk.
Risk Disclaimer
