WASHINGTON - A top US official said on Tuesday that a deal with Iran to reopen the Strait of Hormuz could be struck "today or tomorrow", sending oil prices tumbling on hopes of increased shipments through the vital waterway.
US Treasury Secretary Scott Bessent told CNBC "there is a chance we may have a deal" in the coming hours, echoing President Donald Trump.
Speaking from the White House on Monday, Trump kept up his familiar combination of optimism for diplomacy and threats, warning that this was Iran's "last chance before decapitation".
Tehran and Washington have been at war since February 28, when the US and Israel launched surprise attacks on Iran. Despite a ceasefire and a preliminary deal in the months since, diplomacy has failed to end the conflict.
Underlining the volatile situation, one crew member was listed missing Tuesday on a merchant ship hit by a projectile in Hormuz, while an Indian ship in the Red Sea sank following an unattributed attack.
The Strait of Hormuz, a key conduit for global oil and gas supplies, has been the spark for renewed fighting.
Iran wants to control the strait and charge tolls, powers it did not exercise before the war, developments fiercely opposed by the US.
In what has become a regular pattern, Trump last week threatened to hit Iran "very hard", potentially with attacks against civilian infrastructure, only to pull back, hinting a deal was near.
But Iran's foreign ministry denied negotiations with Washington, even as Trump insisted they were happening.
Secretary of State Marco Rubio said Tuesday that the United States was involved in negotiations between Oman and Iran on increasing traffic through the Strait of Hormuz.
Oil prices plummeted on the rekindled hopes of reopening the strait, with benchmark Brent North Sea Crude prices falling over six percent to below $79.00 per barrel.
- AFP