An agreement to reopen the Strait of Hormuz to shipping could be reached within days, President Donald Trump said, as U.S. and Iranian officials hold talks mediated by Oman and Pakistan. Oil prices swung sharply on the news after five months of conflict disrupted the waterway.
Trump told reporters traveling with him in California that a deal to reopen the strait could happen Wednesday or Thursday, adding that a lot of progress has been made in talks with Iran. He also told Fox News the strait would open very soon.
Bessent points to a deal this week
The optimism follows remarks from Treasury Secretary Scott Bessent, who told CNBC's Squawk Box that the U.S. is in talks with Iran and there is a chance of a deal today or tomorrow to reopen the strait.
A senior Middle East diplomat told MS NOW that the U.S. and European countries are pressing Oman to accept a temporary agreement with Iran on the strait, while a senior Pakistani official said a document on reopening the waterway is close to being finalized. Pakistan is mediating between Iran and Oman, with the U.S. involved indirectly.
Oil swings on the talks
Reports of the Tuesday talks fueled expectations of an end to the five-month conflict, pushing oil prices down and stock markets up. Brent crude then climbed 1.3% to $80.39 a barrel on Wednesday, after sliding 5.3% the day before. West Texas Intermediate futures rose 0.7% to $76.30, following a 5.7% drop on Tuesday.
The U.S. military claims the strait is already open for all commercial vessels to transit. CENTCOM said on X that the southern route of the strait remains free and open, through Omani waters rather than the section nearer Iran. It said it has assisted more than 1,000 vessels transiting despite Iranian aggression it called unwarranted.
Yet Trump has kept a military threat attached to the diplomacy. According to CNBC, Trump warned Iran it would be hit hard if talks broke down again: "If they back out again, they are going to get hit really hard."
Source: CNBC
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