US and Iran could reach Strait of Hormuz deal within days
Photo: Strait of Hormuz (Getty Images)
The United States and Iran are on the verge of a peace breakthrough if they can finalize an agreement on control of the Strait of Hormuz, said US Treasury Secretary Scott Bessent in an interview with CNBC.
US expects agreement with Iran
Bessent said the two sides are engaged in talks that could result in an agreement as early as today or tomorrow.
"We are in talks with the Iranians. 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," Bessent said.
Under the proposed arrangement, freedom of navigation through the Strait of Hormuz would be restored, while the two sides continue discussions over whether Iran would be allowed to charge transit fees for commercial vessels.
Oil prices
US crude oil futures dropped about 4%, falling below $77 per barrel after Bessent's comments. The Treasury Secretary said he expects prices to decline further once the Strait of Hormuz fully reopens.
He said that there are hundreds, if not thousands, of ships waiting to pass.
Iran eases demands over the Strait of Hormuz
Iran wants to control inbound shipping through the Strait of Hormuz and retain authority over outbound traffic, with the ability to intervene if necessary, according to an interim proposal from Oman.
A senior Iranian source told Reuters that the outbound route would pass between Iran and Oman, with exit permission granted through Oman after notifying Iran.
"Tehran is unlikely to change its position," the source said, adding that Tehran has already demonstrated flexibility by dropping its previous demand for full control over vessel traffic in both directions.
Earlier, RBC-Ukraine reported that oil prices surged again on August 4 amid uncertainty over a diplomatic resolution between Washington and Tehran.
US President Donald Trump also said negotiations with Iran are moving quickly and the sides are discussing the full restoration of normal shipping in the Strait of Hormuz as early as Tuesday, August 4.
