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Hormuz Deal Hopes Lift Markets
Oil prices fell to a three-week low as senior US officials raised hopes of a deal with Iran to reopen the Strait of Hormuz, with US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent saying talks had progressed to allow shipments to potentially resume as soon as this week.
“Oil prices fell to a three-week low on Tuesday”
Rubio told reporters at the State Department, "There's been progress made in those talks, but not finality yet," and Bessent said a deal could be agreed as soon as Tuesday or Wednesday.
The BBC tied the market move to the reopening prospect, noting that Brent crude fell by almost 5% to under $80 (£60) and that US West Texas Intermediate prices were down more than 5% to $76 a barrel.
The BBC also said the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February, and it warned that previous negotiation failures had left the oil market volatile.
Bessent: Freedom of Movement
Treasury Secretary Scott Bessent told CNBC that a deal to reopen the Strait of Hormuz is in sight after President Donald Trump warned it was the "last chance" to bring an end to the five-month conflict.
Bessent said, "There is a chance we may have a deal today or tomorrow to open the Strait," and he added that the deal would allow "freedom of movement" in the strait when asked whether Iran would be allowed to charge a toll.
The BBC reported that Iran has said it is not negotiating with the US and is instead talking to Oman, while Qatar said it was continuing efforts with other mediators to try to achieve a diplomatic resolution.
The CNBC account also said Tehran continued to deny that any direct negotiations with the U.S. are taking place, and it quoted Qatari foreign ministry spokesperson Majed Al Ansari saying diplomats were working with other mediators, including Pakistan and Oman, to facilitate negotiations and exchange drafts between the two sides.
Blockade, Attacks, and Next Steps
Even as negotiations drew market attention, the BBC said another blockade was in place on Saudi Arabia's ports in the Red Sea, imposed by Yemen's Iran-backed Houthis since 20 July, and it described a spate of attacks on vessels reported in the past week.
“a projectile sank an Indian-flagged vessel near Yemeni waters”
The BBC reported that on Tuesday, a projectile sank an Indian-flagged vessel near Yemeni waters, with all 14 on board rescued, and it said the disruption sent prices at the pumps up across the world.
In a separate development, the UKMTO Centre said a cargo vessel was struck by an "unknown projectile" in the Strait of Hormuz off the coast of Oman, and it added that "UKMTO has received a report of an incident 20NM northeast of Al Khasab, Oman."
The BBC framed the stakes in energy terms by noting that the Strait of Hormuz was a central point in negotiations between the US and Iran and that, before the conflict began in late February, it handled about one-fifth of global daily oil and liquefied natural gas supplies.
