US and Iran near deal to reopen Strait of Hormuz as shipping attack raises tensions
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U.S. Treasury Secretary Scott Bessent said on Tuesday that Washington and Tehran could finalize an agreement to reopen the Strait of Hormuz by Wednesday, restoring freedom of navigation for commercial shipping. “We are in talks with the Iranians, and I think there is a chance that we reach a deal today or tomorrow to open the strait and move toward a more normal situation in this conflict,” Bessent told CNBC .
The announcement followed President Donald Trump’s ultimatum on Monday that Iran must fully reopen the strait by Tuesday or face renewed U.S. military strikes, according to Bloomberg . Despite the deadline, an unknown projectile struck a cargo ship in the strait on Tuesday, underscoring ongoing tensions .
Iran has demanded control over inbound shipping through the Strait of Hormuz and oversight of outbound vessels, a position it is unlikely to abandon, according to a source cited by Reuters . Qatar, acting as a mediator, confirmed that indirect talks between the U.S. and Iran are continuing, with draft proposals being exchanged, but no direct negotiations are planned .
The Financial Times reported that Brent crude oil prices dropped 4% after Bessent’s remarks, as Iranian and Omani negotiators agreed on a temporary shipping arrangement . The New York Times, however, noted that Washington disputes Tehran’s account, insisting any temporary routes would not require Iranian approval or toll payments .
Saudi Arabia has also sought to de-escalate regional tensions, halting airstrikes on Houthi positions in Yemen after conducting limited raids in late July, according to Handelsblatt . Meanwhile, Lebanon and Israel held a new round of direct talks in Rome on Tuesday to discuss Hezbollah’s disarmament, as part of their U.S.-mediated security agreement .
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