US officials are optimistic about reaching a new agreement with Iran to reopen the Strait of Hormuz, causing a significant drop in oil prices. Treasury Secretary Scott Bessent expressed confidence in the possibility of striking a deal with Iran to reopen the vital waterway, which has been blocked by Iran. He mentioned that there is a chance for an agreement to be reached “today or tomorrow.”
State Secretary Marco Rubio acknowledged progress in the discussions but noted that final decisions are pending. He expressed hope that a resolution would be achieved soon. President Donald Trump highlighted that ongoing talks with Tehran represent a final opportunity to secure a deal.
Despite these statements, Iranian authorities denied engaging in any negotiations with the US. Following Bessent’s remarks, the international oil benchmark, Brent, plummeted over 5.4% to $79.21 per barrel. Lower oil prices typically lead to a decrease in petrol prices, although the impact is usually slower compared to price increases.
During an interview on CNBC’s Squawk Box, Bessent addressed the possibility of Iran imposing toll charges, stating it should allow for freedom of movement. He emphasized that a significant drop in oil prices is expected once hundreds of ships stranded in the Persian Gulf can resume their journeys, affecting various industries beyond energy.
The prospect of a deal to reopen the Strait of Hormuz has raised hopes of a substantial relief in trade as prices are anticipated to decline further.