US Treasury Secretary Bessent: We may have an Iran deal tomorrow to open Hormuz
US Treasury Secretary Scott Bessent said that a deal to reopen and stabilize shipping through the Strait of Hormuz could be reached as soon as Tuesday or Wednesday, raising hopes that recent tensions in the Gulf may ease and reduce pressure on global energy markets.
Speaking in a CNBC interview, Bessent said negotiations regarding the strategic waterway were progressing rapidly and suggested that an agreement could be finalized within days.
Despite the recent turmoil, Bessent noted that vessel traffic through the strait has continued. “We saw quite a few ships coming out of Hormuz even now,” he said, suggesting that shipping activity has not come to a complete halt despite the risks faced by commercial operators.
The Treasury Secretary acknowledged that conditions in the region had been challenging, referring to the elevated geopolitical risks that have fuelled volatility across oil and financial markets.
However, he expressed confidence that an agreement would help calm markets and reverse some of the recent risk premium embedded in energy prices. “Expect energy prices to settle down,” Bessent said, arguing that a reduction in tensions would ease concerns about supply disruptions and improve the outlook for global trade flows.
Bessent also suggested that financial markets could respond positively if negotiations are successful. “We could see a big relief trade as those prices go down,” he said, pointing to the potential for lower oil prices to support risk assets while reducing inflationary pressures that have concerned investors and central banks alike.
Markets are now closely watching for further developments from Washington, Tehran, and regional mediators, with any agreement on the Strait of Hormuz to have significant implications for crude oil prices, inflation expectations, and broader global market sentiment.
This article was written by Giuseppe Dellamotta at investinglive.com.