U.S. Treasury Secretary Scott Bessent has indicated that Washington and Tehran are on the verge of finalizing an agreement to reopen the Strait of Hormuz, with a deal potentially sealed as early as this week.
The comments, reported by Yonhap, suggest a rapid de-escalation in the shipping crisis that has dominated global energy markets for weeks.
Any credible move toward reopening the strait directly undermines the supply-risk narrative that has propped up Brent crude above $70 in recent weeks.
Bessent emphasized that the core of the negotiation centers on restoring freedom of navigation through the critical chokepoint, which has been subject to intermittent closures and heightened security risks since tensions flared earlier this summer.
The prospect of a diplomatic resolution has already begun to weigh on crude prices, with oil sliding in early trading as traders priced in a lower probability of sustained supply disruption.
The Strait of Hormuz remains the world’s most vital oil transit route, handling roughly a fifth of global petroleum consumption.
Any credible move toward reopening the strait directly undermines the supply-risk narrative that has propped up Brent crude above $70 in recent weeks.