US Allows for Early Agreement on Strait of Hormuz

The United States anticipates that an agreement on restoring free navigation through the Strait of Hormuz could be reached soon. US Treasury Secretary Scott Bessent said this on August 4.

Bessent added that a deal could come as early as Tuesday or Wednesday. He stressed that the final terms must ensure freedom of movement for vessels through the strategically vital sea route.

One unresolved issue remains a possible passage fee for ships. Iran and Oman have previously discussed the future organization of navigation, services provided to vessels, and associated costs. The American side insists that any agreements should not restrict international shipping.

Tehran, meanwhile, has publicly denied holding direct talks with Washington. Iranian authorities have stated that they are discussing the establishment of a temporary shipping corridor with Oman. Muscat is acting as a mediator and supporting diplomatic efforts to restore safe passage through the strait.

Iran and Oman already agreed in June to continue consultations within a joint working group. The sides expressed their intention to keep the Strait of Hormuz safe and open to international navigation in compliance with international law.

The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Significant volumes of global oil and liquefied natural gas pass through it, so any restrictions on vessel traffic quickly affect energy prices, insurance, and international trade.

Bessent's statement triggered a decline in oil prices. Market participants are betting that a possible agreement will reduce supply disruption risks and allow for a resumption of stable tanker and cargo ship traffic.

However, the final terms of the agreement have yet to be announced. It is unknown what security guarantees shipowners will receive, whether a service fee for the route will be included, and when traffic through the strait can fully recover.

Based on materials from: Bloomberg