Scott Bessent predicts ceasefire agreement with Iran could come soon

US Treasury Secretary Scott Bessent said on August 4 that the United States and Iran could reach an agreement to reopen the Strait of Hormuz to commercial shipping, possibly within days. The announcement sent US crude oil prices plunging nearly 6%, falling below $76 per barrel as traders priced in the possibility of a major de-escalation in a conflict that has choked one of the world’s most critical maritime corridors. Bessent described a “chance” for a deal that would restore “freedom of movement” through the strait without tolls. Hundreds of commercial vessels have been stalled waiting to transit the waterway, and roughly a fifth of the world’s daily oil consumption typically passes through it. What’s on the table The negotiations center on reopening the Strait of Hormuz, the narrow passage between Iran and Oman that connects the Persian Gulf to the open ocean. The current disruption follows US and Israel launching strikes against Iran on February 28. This isn’t the first attempt at a resolution. A memorandum of understanding signed on June 17 was supposed to reopen the strait for 60 days, giving both sides breathing room. It collapsed in July over disagreements about shipping ro...