The US Treasury secretary signalled that Washington and Tehran could reach a deal to reopen the Strait of Hormuz as soon as Tuesday or Wednesday, sending oil prices 4 per cent lower. Scott Bessent told CNBC that talks with the Iranians were ongoing and that a deal today or tomorrow could open the strait.

Briefed diplomats said Iranian and Omani negotiators had agreed a temporary arrangement to direct shipping through the strait, but Iran’s top leadership still had to sign off. Under the plan, vessels would enter via Iranian waters and exit through an Omani‑controlled channel, with Iran initially sending oil and LNG tankers to clear mines before wider traffic resumes.

Brent crude fell 4 per cent to below $80 a barrel for the first time in three weeks, while the S&P 500 climbed 1 per cent to a record high and the Nasdaq rose 1.6 per cent on solid Palantir results. If the deal is reached, the US would lift its naval blockade on Iranian ports and reinstate a waiver allowing Iran to sell oil.

The Strait has become the focal point of the US‑Iran conflict, and securing a deal between Tehran and Muscat is seen as critical to preventing further escalation and resuming negotiations on ending the war. Negotiators await approval from Iran’s top leader Ayatollah Mojtaba Khamenei and the national security committee.