Treasury Secretary Bessent Says US-Iran Deal on Strait of Hormuz Could Come 'Today or Tomorrow'

Imminent Deal on the Horizon

Treasury Secretary Scott Bessent on Tuesday said the U.S. and Iran could strike a deal by midweek to reopen the Strait of Hormuz and allow normal shipping through the oil choke point. 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.

Trump's Military Pressure and Strategic Shift

Mr. Trump had been ready to launch a massive attack on Iran over the weekend, only to pull back upon the request of the Saudis and other Gulf partners, who want to mediate a deal with Iran. President Donald Trump warned that the latest round of negotiations with Iran is the "last chance" to bring an end to the five-month conflict. The U.S. may secure a deal, Bessent said, "because their air force is wiped out, their navy is wiped out" and a "substantial portion of their missiles are wiped out."

Terms of the Proposed Agreement

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. 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.

Market Impact and Shipping Crisis

Oil sold off hard on the remarks. WTI crude fell 4.5% to $76 while Brent dropped 3.7% to $80. According to Kpler data cited by Reuters, six vessels with active transponders crossed the strait Monday, down from seven Sunday, compared with more than 100 daily crossings in normal conditions.