US President Donald Trump has issued a stark ultimatum regarding the Strait of Hormuz, stating that the vital waterway will be reopened for navigation "very soon" or face severe consequences.
Speaking in New York, Trump warned that if Iran backed out of ongoing discussions, it would be "hit very hard."
The comments follow what Trump described as an "all-day negotiation" with Tehran on Tuesday, during which he claimed both sides were having "very good" discussions.
The US president's remarks signal a potential de-escalation in the long-standing dispute over the chokepoint, which handles roughly a fifth of global oil supplies.
Markets are closely watching for signs of a diplomatic breakthrough.
Brent crude prices have been volatile amid fears of shipping disruptions in the region.
A confirmed reopening of the strait would likely ease risk premiums on tanker routes and support a pullback in energy prices.