Bessent Says US-Iran Deal on Hormuz Could Be Reached Soon
US Treasury Secretary Scott Bessent stated that an agreement between the US and Iran regarding control of the Strait of Hormuz could be reached within the next few days. This statement immediately put downward pressure on oil prices, as the market saw a possibility that this vital energy shipping lane could reopen more smoothly.
Bessent said the US is in talks with Iran and raised the possibility of an agreement being reached on Tuesday or Wednesday. According to him, such a deal could help reopen the Strait of Hormuz, one of the world's most critical energy corridors.
When asked if the agreement would include fees levied by Iran on passing vessels, Bessent did not provide details. However, he noted that there would likely be freedom of movement for ships along the route.
Bessent's statement caused an immediate, sharp drop in oil prices. Brent futures fell as much as 4% to below $81 per barrel during London trading, as the market began to shed some of the geopolitical risk premium that had previously supported prices.
Regarding market impact, a potential US-Iran deal on the Strait of Hormuz could weigh on Brent and WTI prices if it successfully restores the flow of energy shipments. However, the market remains cautious, given that a similar agreement failed last month and the two nations have continued to exchange attacks. Should the deal fall through again, oil prices could rebound quickly, as supply risks have not yet fully dissipated. (asd)
Source: Newsmaker.id
