Washington and Tehran continue to deliver mixed messages on the nature of diplomatic efforts. US Treasury Secretary Scott Bessent has told CNBC a deal to reopen the Strait of Hormuz is in sight, after President Donald Trump warned that the latest round of negotiations with Iran is the “last chance” to bring an end to the conflict. However, Iran has not publicly endorsed either phase of the US plan.
The United States could reach an agreement with Iran on Tuesday or Wednesday to reopen the Strait of Hormuz and restore the free movement of commercial ships, US treasury secretary Scott Bessent said in an interview.
“We are in talks with the Iranians,” Bessent told CNBC. “There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.”
Asked if a deal would allow Iran to charge a toll on shipping using the strait, Bessent said: “I think it would be freedom of movement.”
Bessent was upbeat on the impact a deal with Iran over the strait would have on energy prices, where he said hundreds of ships are waiting to go out.
“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,” Bessent 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 secretary predicted prices could fall even more once hundreds of ships stuck in the Persian Gulf for months finally get moving.
“Its not just energy. Its fertilizer, its refined products, it is the various industrial gases,” he said. “We could see a big relief trade as those prices go down.”
His words came after Trump called the talks with Iran “last chance” to avoid an escalation in U.S. strikes.
“I’m not going to let them charge,” Trump said to reporters referring to tolls on shipping.
He said negotiators would first seek to reopen the Strait, then turn to Tehran’s nuclear program.
“The first phase is the opening of the straits. The second phase will be the denuclearization,” Trump said in the Oval Office. “And that will take a little while.”
Trump said reporters could learn more about the negotiations “today or tomorrow.”
Gulf allies have urged Trump to hold off on the planned attack, fearing more Iranian reprisals against their territory.
The Strait of Hormuz has been a central point in negotiations between the US and Iran. The disruption has sent prices at the pumps up across the world.
Qatar on Monday stressed the importance of having all parties commit to dialogue and diplomacy, implementing what was agreed in the memorandum of understanding (MoU) between the United States and Iran, including the freedom of navigation in the Strait of Hormuz.
