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Bessent says Strait of Hormuz deal could be reached in days
The US Treasury Secretary said talks are moving quickly and that a deal could lower the risk premium in energy prices, with potential spillovers to inflation expectations and global sentiment.
US Treasury Secretary Scott Bessent said a deal to reopen and stabilize shipping through the Strait of Hormuz could be reached as soon as Tuesday or Wednesday, with negotiations progressing rapidly, according to Forexlive.
In a CNBC interview, Bessent said vessel traffic through the strait has continued despite elevated geopolitical risks, adding that shipping activity has not come to a complete halt even amid regional turmoil.
He argued that an agreement would help calm markets and reduce the risk premium embedded in energy prices, with an expectation that energy prices would settle down as supply disruption concerns ease.
Bessent also suggested financial markets could react positively to a successful outcome, describing the possibility of a broader relief move if oil prices decline and concerns about inflation pressures lessen.