The United States may be on the verge of a deal with Iran to reopen the Strait of Hormuz for commercial shipping, according to Treasury Secretary Scott Bessent. Bessent stated on Tuesday morning that discussions are ongoing with Iran and expressed optimism about reaching an agreement "today or tomorrow" to restore "freedom of movement" through the vital waterway.
Bessent indicated that any agreement would prevent Iran from imposing tolls or fees on passing vessels. The prospect of the strait's reopening sent oil prices lower, with crude oil dropping below $77 a barrel. Bessent predicted further price declines once the hundreds of ships currently delayed in the Persian Gulf are able to move freely, noting potential relief for prices of various goods, including fertilizers and refined products.
However, Iran's Foreign Ministry spokesman, Esmail Baghaei, repeatedly denied on Monday that the country was discussing a deal over the Strait of Hormuz with the United States. Baghaei clarified that Iran's current negotiations were with Oman and focused on ensuring safe passage for shipping. He asserted that "Our negotiations are with Oman and are focused on reaching an understanding on a route that will ensure the safe passage of shipping through the Strait of Hormuz."
Baghaei further stated that any potential deal with the U.S. would only be temporary unless what he termed U.S. "aggression" ceased. "As long as the US mischief continues, as long as the Iranian sea siege continues, as long as the US military aggression against Iran and its allies continues, there will be no [permanent] change in … Hormuz," he added.
This potential breakthrough follows President Trump's decision over the weekend to call off a major strike on Iran, opting instead to pursue diplomatic efforts. The Strait of Hormuz is a critical chokepoint, with approximately one-fifth of the world's oil passing through it. Weeks of conflict have disrupted shipping and caused volatility in global markets.
Previously, the U.S. and Iran had reached a tentative memorandum of understanding on June 17 that aimed to reopen the strait. However, that deal collapsed due to disagreements over the specific routes ships would take. Iran had advocated for vessels to pass through its own territorial waters, while the U.S. insisted on unimpeded access throughout the international shipping route. Following the breakdown of talks, Iran launched attacks on tankers near Oman's coast under U.S. protection, prompting the U.S. to conduct airstrikes and reinstate a naval blockade of Iranian ports.