US Treasury Secretary sees possible Iran deal on Hormuz by Wednesday

Washington: United States Treasury Secretary Scott Bessent has indicated that a deal with Iran to reopen the Strait of Hormuz could be reached by Wednesday, August 5, 2026. Such an agreement, he said, would help stabilise global energy prices.

Speaking to CNBC on Tuesday, August 4, Mr. Bessent said: "We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict."

When asked whether a deal would allow Iran to levy a toll on shipping through the strait, Mr. Bessent said: "I think it would be freedom of movement."

His comments echoed remarks made by U.S. President Donald Trump on Monday, August 3, who insisted that the waterway could reopen within hours after he pulled back from threats of a massive military strike on Iran over the weekend.

However, Iran's Foreign Ministry has denied that negotiations with Washington are taking place. On Tuesday, an unidentified projectile struck a cargo ship in the Strait of Hormuz, a key point of tension in the U.S.-Iran conflict.

Secretary of State Marco Rubio said on Tuesday that the United States is "involved" in negotiations between Oman and Iran on increasing traffic through the strait, through which around 20% of global oil shipments passed prior to the war. "There's been progress made in those talks but not finality yet; we're hoping that will happen very shortly," he told journalists.

Mr. Bessent expressed optimism about the potential impact of a deal on energy prices, noting that hundreds of ships are waiting to pass through the strait. "Even though things are still a little dicey there over the past few days, we've seen quite a few ships coming out even now," he said. "So, you know, I'd expect the energy prices to settle back down, which, as I said, will be good for the entire world."

The Strait of Hormuz is a vital maritime route for global oil supplies. Any disruption or agreement affecting its accessibility has significant implications for world energy markets. The situation remains fluid, with diplomatic efforts continuing and no confirmed deal announced as of now.