WASHINGTON: An Iran Hormuz deal could be reached as early as August 4 or 5, US Treasury Secretary Scott Bessent said, prompting a sharp decline in global oil prices.
Bessent told CNBC on Tuesday that negotiators could reach an agreement “today or tomorrow.” He said any arrangement should restore freedom of movement for commercial vessels without allowing Iran to impose tolls.
Brent crude fell USD 4.41, or 5.3%, to USD 79.36 a barrel on August 4. US West Texas Intermediate crude dropped 5.6% to USD 75.87 as traders assessed the prospects of more oil shipments passing through the strait.
However, no final agreement had been announced. Iran and Oman were discussing a proposal under which ships entering the Persian Gulf would use an Iranian-controlled route, while outbound traffic would pass through Omani waters, according to the Associated Press.
🇺🇸 🇮🇷 Asked where things stand with Iran, Trump responded:
"We'll know in 48 hours."
Axios reports the U.S., Iran and Oman are closing in on an interim deal with an announcement targeted for Wednesday, 60 days of temporary lanes, mines cleared from the middle channel within…
— Mario Nawfal (@MarioNawfal) August 5, 2026
Tehran has denied holding direct negotiations with Washington. US officials have maintained that they remain involved in wider regional efforts to restore commercial shipping through the strategic waterway.
Qatar and Pakistan have also participated in mediation. A joint statement issued after earlier high-level US-Iran discussions established a 60-day roadmap for a final agreement and a communication channel intended to prevent incidents involving commercial vessels.
Read: Trump Says US-Iran Talks Continue Despite Tehran’s Denial
The Strait of Hormuz remains a major route for global energy supplies. Bessent previously said that about 20% of the world’s energy supply passes through the waterway each day.