Bessent says U.S. could have deal with Iran "today or tomorrow"

Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"

Investing.com - U.S. Treasury Secretary Scott Bessent said he believed the U.S. and Iran were nearing an agreement to resolve their dispute over the Strait of Hormuz, although mixed messaging left uncertainty lingering over the conflict in the Middle East.

Bessent told CNBC that "there is a chance we may have a deal today or tomorrow" to open the Strait of Hormuz and "move towards a more normalized position in this conflict."

Qatar said a push to forge a diplomatic resolution to the Iran war is ongoing, with the efforts focused on de-escalation and the reopening of the Strait of Hormuz, according to media reports.

The Gulf country, which has served as a regional mediator between Iran and the U.S., reportedly added that language on a possible deal has been drafted and is being circulated among negotiators. While there is currently no agreement to hold direct talks, a short-term resolution is the focus for Qatar, the reports said.

Oil prices erased earlier gains in the wake of the reports. Brent crude futures, the global oil benchmark, were last down 2.9% to $81.38 a barrel, after having gained more than 2.5% earlier. U.S. West Texas Intermediate (WTI) crude futures dropped 3.2% to $77.75 a barrel.

However, a fresh strike hit a vessel moving through the Strait of Hormuz early on Tuesday, the British navy’s marine-traffic monitoring agency (UKMTO) flagged.

The UKMTO did not specify who was responsible for the attack. But it was the latest example of conflicting signals coming out of the Middle East, maintaining concerns that the months-long war in the region will remain stuck in a recurring cycle of escalation and detente. Worries have abounded that such a scenario could lead to persistent regional crude supply disruptions, sparking a burst of inflation and central bank interest rate hikes.

But Tuesday’s slide in oil prices may soothe some of these fears. Benchmark U.S. 10-year Treasury yields, which tend to move inversely to prices and can be a gauge for rate expectations, fell.

Earlier in the week, U.S. President Donald Trump asserted that revived talks with Iran would soon start, although Iranian Foreign Minister Esmail Baghaei denied that any such dialogue was taking place. Trump responded by calling Iranian leadership "unbelievably duplicitous."

Tehran did confirm that talks with Oman were ongoing over the status of the Strait of Hormuz. But traffic through the vital waterway was scant, while military tensions in the Gulf remained heightened. In a note to clients, analysts at Mizuho described the near-term geopolitical backdrop as "somewhat unclear."

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