US President Donald Trump said the Strait of Hormuz would reopen “very soon” or Iran would be “hit very hard”, while signs of progress in talks over commercial shipping pushed oil prices to their lowest levels in three weeks.
Speaking to Fox News during a visit to California, Trump said discussions were going well and maintained that Iran wanted an agreement to end months of conflict. He said on Monday that he had called off “massive” strikes to allow negotiations to resume.
Secretary of State Marco Rubio said discussions involving Iran and Oman had made progress on enabling more ships to pass through the waterway, although no final agreement had been reached. Treasury Secretary Scott Bessent said a deal could potentially be concluded as soon as Wednesday, allowing freedom of movement through the strait.
Iran has said it is not negotiating with the United States and has no plans to do so. Its foreign ministry said its discussions with Oman, which has been acting as a mediator, on a new vessel-transit mechanism had been positive. Qatar said it was continuing diplomatic efforts with other mediators, but that no direct talks were planned.
US Central Command said the southern route through the Strait of Hormuz remained open to commercial vessels seeking to use the international waterway. However, details of any potential arrangement have not been made public.
Oil market reacts
Brent crude fell nearly 5% on Tuesday to below $80 a barrel and declined by about 0.7% in Asian trading on Wednesday. US West Texas Intermediate crude dropped more than 5% to $76 a barrel. Both benchmarks reached their lowest levels since 13 July.
The strait handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February. Iran has halted most traffic through it during the conflict, while the US has imposed a naval blockade on Iranian ports in the region.
Shipping risks have also increased elsewhere. Yemen’s Iran-backed Houthis have blockaded Saudi Arabian Red Sea ports since 20 July, affecting an alternative route. On Tuesday, a projectile sank an Indian-flagged vessel near Yemeni waters, India’s shipping minister said; all 14 people aboard were rescued.
Analyst Danni Hewson of AJ Bell said investors remained aware of the fragility of previous efforts to secure lasting agreements. Disruption has lifted fuel costs, with UK petrol averaging £1.60 a litre, according to the RAC, while average US gasoline prices were above $4 a gallon, according to AAA.
Source: BBC News
