Trump says Strait of Hormuz to reopen as early as this week as Iran talks advance
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President Donald Trump said on Tuesday that the Strait of Hormuz will reopen shortly as U.S.-Iran negotiations advance, with shipments possibly resuming as early as this week. Brent crude fell nearly 5% to below $80 a barrel on the prospect of easing supply disruptions. The drop occurred even as months of failed talks had kept global oil markets volatile and fuel prices elevated.
Negotiations Progress
President Trump described negotiations with Iran as proceeding 'very well' and said Tehran seeks a deal, but warned 'if there is no deal, it will be very bad for them.' Secretary of State Marco Rubio and Treasury Secretary Scott Bessent confirmed tangible progress, indicating that oil shipments through the Strait of Hormuz could restart as early as this week. The strait, a chokepoint for roughly a fifth of global oil supply, has been disrupted by heightened U.S.-Iran tensions.
Oil Market Reaction
Brent crude, the global benchmark, fell about 5% to trade below $80 a barrel on Tuesday, its lowest since July 13. U.S. West Texas Intermediate crude dropped over 5% to $76 a barrel. The declines came after news of the potential resumption of shipments eased fears of prolonged supply disruptions. Oil markets have been on edge for months due to the closure risk.
Previous Failed Talks
Earlier U.S.-Iran negotiations in recent months had repeatedly collapsed, fueling oil market volatility and pushing gasoline prices higher at the pump. The repeated failures had raised concerns of a prolonged standoff. Tuesday's breakthrough, if realized, would mark a sharp reversal.
What's Next
The U.S. and Iran are expected to continue talks in the coming days, with the Strait's reopening contingent on a finalized agreement. Analysts warn that if negotiations stall again, oil prices could quickly rebound, and the threat of wider regional instability remains.
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Trump says Strait of Hormuz to reopen as early as this week as Iran talks advance
