Officials in the United States are expressing optimism regarding the possibility of reaching a new agreement with Iran to reopen the Strait of Hormuz, leading to a significant drop in oil prices.
Scott Bessent, the Treasury secretary, indicated that there is a likelihood of striking a deal with Iran to unlock the vital waterway that has been obstructed by Iran, potentially happening “today or tomorrow.”
Marco Rubio, the State secretary, mentioned that progress has been achieved in the discussions, although a final agreement has not been reached yet. He expressed hopes that a resolution would be reached soon.
Donald Trump stated on Monday that negotiations with Tehran are ongoing and emphasized that Iran has a “last chance” to finalize a deal.
Despite these statements, Iranian officials have refuted any claims of engaging in talks with the United States.
Following Mr. Bessent’s remarks, the international oil benchmark, Brent, experienced a more than 5.4% decline to $79.21 per barrel. When oil prices drop, petrol prices typically follow suit, although the adjustment is usually slower compared to price increases.
In response to inquiries about potential toll charges by Iran, Bessent emphasized the importance of ensuring freedom of movement, as discussed on CNBC’s Sqawk Box.
Bessent highlighted that oil prices are expected to further decrease once hundreds of vessels trapped in the Persian Gulf are able to depart. He noted the broader impact beyond energy, including fertilizer and industrial gases, and anticipated a significant relief in prices across these sectors.
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