Bessent says there may be deal Tuesday or Wednesday to open Strait of Hormuz with 'freedom of movement' - CNBC
Treasury Secretary Scott Bessent claims the U.S. and Iran are nearing a deal to reopen the Strait of Hormuz to commercial shipping. The potential agreement aims to restore freedom of movement in the region, which could significantly lower global energy and commodity prices.
Why it matters
The Strait of Hormuz is a critical global energy chokepoint; resolving the blockade would alleviate supply chain pressures and reduce volatility in oil markets.
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."
"It would be freedom of movement," the Treasury secretary said when asked whether Iran would be allowed to charge a toll.
U.S. crude oil futures fell nearly 6% to trade below $76 per barrel. Prices should drop further when hundreds of ships stuck in the Persian Gulf are able to exit, Bessent said.
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