President Donald Trump indicated that negotiations with Iran are progressing rapidly toward an interim agreement focused on reopening the Strait of Hormuz.
Speaking to reporters in Los Angeles on Tuesday night, the US president stated that talks are "moving along very nicely" and projected a definitive outcome within the next 48 hours.
The optimism follows reports that Qatar has drafted a proposal for the deal, with both American and Iranian officials expressing hope for the restoration of transit through the vital chokepoint.
The potential agreement aims to de-escalate tensions that have disrupted global shipping routes and weighed heavily on energy markets.
Markets reacted to the developing diplomatic progress, with Brent crude futures adjusting as traders assessed the likelihood of a swift resolution to the shipping crisis.
The prospect of a reopened Strait of Hormuz directly impacts global oil supply chains and freight rates, which have been volatile amid fears of prolonged disruption.