- Treasury Secretary Scott Bessent stated there is a 'chance we may have a deal today or tomorrow' to open the Strait of Hormuz and move towards a more normalized position in the conflict.
- Oil prices fell to a three-week low on Tuesday, with Brent crude dropping almost 5% to under $80 and West Texas Intermediate down more than 5% to $76 a barrel.
- On Monday, Trump warned Iran faced its 'last chance' to agree a deal to allow commercial shipping to resume in the Strait.
- The Strait of Hormuz has been a central point in negotiations; before the conflict began in late February, the waterway handled about one-fifth of global daily oil and liquefied natural gas supplies.
- Yemen's Iran-backed Houthis have imposed a blockade on Saudi Arabia's Red Sea ports since 20 July.
- Iran has stated it is not negotiating with the US and is instead talking to Oman; Qatar mentioned no direct talks were currently planned.
Oil prices have plummeted to a three-week low as U.S. Treasury Secretary Scott Bessent announced that a deal to reopen the crucial Strait of Hormuz could be finalized as early as today or tomorrow.123
Bessent stated, "There's been progress made in those talks, but not finality yet. We're hoping that will happen very shortly," indicating optimism in ongoing negotiations with Iran. The Strait of Hormuz is vital, handling about one-fifth of global daily oil and liquefied natural gas supplies before the conflict escalated in February.45
On Tuesday, Brent crude prices fell nearly 5% to under $80 (£60), while U.S. West Texas Intermediate prices dropped to $76 a barrel. This decline reflects market reactions to potential easing of supply disruptions.
Despite the positive outlook from U.S. officials, Iran has maintained that it is not negotiating directly with the U.S. but is instead engaging with Oman as a mediator. A spokesman for Iran's foreign ministry noted that talks with Oman have been "positive".7
The situation remains delicate, as investors are wary of the fragile nature of agreements in the ongoing conflict. Danni Hewson, head of financial analysis at AJ Bell, remarked, "Investors are acutely aware of how many times we've already been at this point in the war and how fragile the process of securing lasting agreements can be."
The potential reopening of the Strait could significantly impact global oil prices and supply chains, as the region has been a focal point in U.S.-Iran negotiations.
“Secretary of State Marco Rubio said, "There's been progress made in those talks, but not finality yet," while Iran says it is not negotiating with the US and is instead talking to Oman. The strait carries one-fifth of global daily oil and LNG, and Trump on Monday warned Iran it faced its "last chance."”
BBC
