Treasury Secretary Scott Bessent said on Monday that the United States and Iran could reach an agreement within the next day or two to reopen the Strait of Hormuz and restore free passage, according to BlockBeats. The statement followed a phone call between President Donald Trump and Qatar's Emir Sheikh Tamim bin Hamad Al Thani, in which the two discussed efforts to ease US-Iran tensions.
Iran's foreign ministry spokesman Esmaeil Baghaei said on Sunday that Tehran was still negotiating with Oman over the strait, with both sides reporting positive progress on technical and political fronts. The talks focus on defining safe shipping lanes and establishing mechanisms to manage maritime traffic through the waterway, according to Xinhua News Agency.
The market responded quickly to the prospect of diplomatic de-escalation, sending international oil prices sharply lower. Brent crude futures closed down nearly 6% at $78.52 per barrel, settling below the $80 mark. US crude futures tumbled more than 6% to $74.28, also breaking through the $76 level.
Secretary of State Marco Rubio said the negotiations have advanced but are not yet final, expressing hope that a deal could be reached soon. Bessent added that once the strait reopens, prices for energy, fertilizers, and refined products could ease further. Still, no formal agreement has been signed.
Washington and Tehran previously reached a temporary arrangement on restoring shipping through the strait, but it collapsed over route and security disagreements. Analysts caution that even a new agreement would not mean a complete end to US-Iran hostilities, with the risk of renewed escalation still on the table.