U.S. Treasury Secretary Scott Bessent signalled the U.S. and Iran could reach an agreement as early as Tuesday or Wednesday to reopen the Strait of Hormuz, restoring free passage for commercial shipping.

Bessent told CNBC’s "Squawk Box” on Tuesday that the proposed agreement would ensure “freedom of movement” through the strait, indicating that Iran would not be allowed to impose transit tolls.

“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.”

"Even though things are still a little dicey there over the past few days, we saw quite a few ships coming out even now," Bessent added.

He said hundreds, possibly more than 1,000 ships are waiting to depart, with the disruption affecting not only energy shipments but also fertilizers, refined petroleum products, and industrial gases.

“We could see a big relief trade as those prices go down,” Bessent said.

At the time of writing, Brent Oil Futures were trading 2.16% lower at $81.94 per barrel. At the same time, WTI crude oil futures were trading 2.86% lower at $78.05 per barrel.

Oil Risks Persist Amid Iran Standoff

On Monday, President Donald Trump said the U.S. was holding “last chance” talks with Iran following canceled military strikes. Iran’s Foreign Ministry denied that any negotiations were taking place, contradicting Trump’s remarks.

Trump later accused Iran’s leadership of being “unbelievably duplicitous” in a Truth Social post. He said additional discussions were expected in the “immediate future.”

Uncertainty surrounding the Strait of Hormuz continues to threaten global oil supplies. Before the conflict began in February, the vital waterway carried about 20 million barrels of oil per day, accounting for more than one-fifth of global oil shipments. Iran had earlier signalled progress in talks with Oman regarding the critical waterway.

However, Tehran also said that its agreement with Oman on a new shipping route does not signal the reopening of the Strait of Hormuz. Foreign Ministry spokesperson Esmaeil Baqaei said the route is a necessary step but, by itself, is insufficient to reopen the strategic waterway.

GasBuddy analyst Patrick De Haan said U.S. consumers are unlikely to see lower gasoline prices unless tensions between the United States and Iran ease.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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