US Treasury Secretary Says Hormuz Agreement with Iran Could Be Reached Within Days

World 05:07 PM - 2026-08-04

US Treasury Secretary Scott Bessent.

US Treasury Secretary Scott Bessent has said an agreement with Iran to reopen the Strait of Hormuz could be reached as early as Tuesday or Wednesday, raising hopes of easing tensions over one of the world's most important shipping routes.

Speaking to CNBC on Tuesday, Bessent said negotiations with Tehran were continuing and that there was a possibility of reaching an agreement "today or tomorrow" that would reopen the strait and help restore normal maritime activity.

He described the recent situation in the Strait of Hormuz as "very dangerous", but said any agreement would guarantee freedom of navigation through the strategic waterway. Bessent did not comment on whether Iran would be permitted to impose transit fees.

His remarks contributed to a fall in oil prices, with US benchmark West Texas Intermediate crude declining by around 4.7%.

Meanwhile, Reuters, citing a senior Iranian source, reported that Tehran is seeking to retain oversight of shipping entering and leaving the Strait of Hormuz under a temporary arrangement being negotiated with Oman to reopen the waterway.

According to the source, vessels would leave through a corridor between Iran and Oman, with the Omani authorities authorising departures after notifying Tehran. The source described this as the general framework currently under discussion.

The source added that Iran was unlikely to alter its position, although Tehran had already softened its initial demand for full control over all shipping movements through the strait. Last month, Iran rejected an Omani proposal to divide responsibility for transit routes equally between the two countries, arguing that it did not adequately address its security concerns until lasting regional stability had been achieved.

The Strait of Hormuz has remained effectively closed since the conflict began in late February. Washington maintains that the memorandum of understanding signed with Tehran in June required Iran to reopen the waterway, while Iran insists the agreement allows it to retain control over shipping movements.

Before the conflict, vessels transited the Strait of Hormuz freely. Although the waterway lies within the territorial waters of both Iran and Oman, it is widely regarded as an international shipping route. The current traffic separation scheme, established by the International Maritime Organization in 1968 in agreement with regional states, regulates shipping lanes through Iranian and Omani waters.

Approximately 34 kilometres wide at its narrowest point, the Strait of Hormuz links the Gulf to the Indian Ocean and remains one of the world's most strategically important maritime corridors, carrying a significant share of global energy exports as well as other vital commodities, including fertilisers.


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