US officials are expressing optimism about reaching a new agreement with Iran to reopen the Strait of Hormuz, leading to a significant drop in oil prices. Treasury Secretary Scott Bessent mentioned the possibility of striking a deal with Iran to reopen the vital waterway that has been blocked by Iran, stating that it could happen “today or tomorrow.”
Secretary of State Marco Rubio noted progress in the negotiations but emphasized that a final agreement has not been reached yet, expressing hope for a prompt resolution. President Donald Trump highlighted ongoing talks with Tehran and emphasized that Iran has a “last chance” to come to an agreement.
Despite these statements, Iranian officials have stated that there are no ongoing negotiations with the US. Following Mr. Bessent’s remarks, the international oil benchmark, Brent, dropped over 5.4% to $79.21 per barrel. Lower oil prices typically result in reduced petrol prices, although the effect is slower compared to price increases.
When questioned about the possibility of Iran imposing toll charges, Bessent emphasized the importance of freedom of movement. He also pointed out that once hundreds of ships stranded in the Persian Gulf are able to leave, oil prices are expected to decrease further, impacting not only energy but also other sectors like fertilizer and industrial gases. This could lead to a significant relief in trading as prices decrease.
