According to reports from BBC, Donald Trump indicated that the Strait of Hormuz would be reopened “very soon,” warning that Iran would face significant consequences if it did not comply, as oil prices experienced a decline to their lowest level in three weeks amidst optimism regarding potential negotiations.
In an interview with Fox News, the US President commented following remarks from Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, who suggested that discussions were advancing towards the resumption of oil shipments, possibly within the week.
As a result of this news, the price for a barrel of Brent crude, the international standard for oil trading, dropped nearly 5%, falling below $80 (£60), reflecting the possibility of alleviated supply disruptions.
Despite the positive developments, the recent history of unsuccessful negotiations has contributed to an unstable oil market, which ultimately impacts consumers through increased fuel prices.
During his visit to California, Trump expressed optimism about the negotiations, asserting that Iran was interested in finalizing a deal to resolve the ongoing conflict that has persisted for several months.
The US Central Command (CentCom) confirmed that the “southern route through the Strait of Hormuz remains open for all commercial vessels” navigating the international waterway.
On Tuesday, alongside the decrease in Brent crude, prices for West Texas Intermediate in the US also fell by more than 5%, reaching $76 per barrel, marking their lowest point since mid-July.
Rubio noted that progress had been made in talks aimed at facilitating increased shipping through the strait involving Iran and Oman. “While there has been some advancement in the discussions, we have not reached a conclusive agreement yet. We are hopeful that this will change very soon,” he stated to reporters at the State Department.
Bessent indicated that a potential agreement to reopen the Strait of Hormuz could be finalized as early as Tuesday or Wednesday, suggesting that there was a “chance we may have a deal today or tomorrow to open the strait and move towards a more normalized situation in this conflict,” during his interview with CNBC.
When questioned about whether Iran would impose charges on vessels passing through, he stated that it would represent “freedom of movement.”
Despite the claims from US officials regarding the progress of discussions, no specifics about the terms of a potential agreement have been disclosed. Iran has publicly declared that it is not engaged in negotiations with the US and is instead communicating with Oman.
An Iranian foreign ministry spokesperson mentioned that discussions with Oman, which is acting as a mediator, regarding a new framework for maritime passage through the Strait have been constructive.
Meanwhile, Qatar, which plays a significant role in mediating between Washington and Tehran, has stated that it continues to pursue diplomatic efforts alongside other intermediaries to reach a resolution to the conflict, although it acknowledged that no direct talks are currently scheduled.
As the conflict prolongs, sources have indicated to CBS News, a partner of BBC’s US news service, that the US has nearly exhausted its stockpile of long-range precision missiles.
The Strait of Hormuz has been a pivotal element in the ongoing negotiations between the US and Iran. Prior to the outbreak of conflict in late February, the waterway was responsible for approximately 20% of the world’s daily oil and liquefied natural gas transports.
Since the onset of the conflict, Iran has significantly restricted traffic through the Strait, while the US has enforced a naval blockade on Iranian ports in the vicinity.
Additionally, a blockade has been imposed on Saudi Arabian ports in the Red Sea by Iran-backed Houthis since July 20. This route had gained importance as an alternative after Iran’s blockade of the strait, yet it has become increasingly perilous, with a series of attacks on vessels reported in the past week.
On Tuesday, an Indian-flagged ship was sunk by a projectile near Yemeni waters, according to India’s shipping minister, although all 14 crew members were successfully rescued.
