Topline<\/p>\n
Treasury Secretary Scott Bessent said there was a chance the U.S. could announce a deal with Iran to reopen the Strait of Hormuz \u201ctoday or tomorrow,\u201d causing oil prices to begin falling and the S&P 500 to break its intraday record shortly after markets opened.<\/p>\n
Oil prices fell and stocks rose after the treasury secretaries comments in an interview on Tuesday morning.<\/p>\n
Getty ImagesKey Facts<\/p>\n
In an interview with CNBC<\/a> on Tuesday morning, Bessent said the U.S. was engaged in negotiations with Iran\u2014although Iranian officials have denied<\/a> in recent days they were engaged in \u201cdirect\u201d talks with the U.S.<\/p>\n Bessent said he thinks \u201cthere is a chance we have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict,\u201d citing the Trump administration\u2019s insistence the U.S. military campaign has degraded Iran\u2019s air force, navy and missiles.<\/p>\n When asked if Iran would be allowed to charge tolls for ships passing through the waterway, Bessent said \u201cI think it would be freedom of movement,\u201d but did not provide any further details about how that would be enforced.<\/p>\n Oil prices fell after Bessent\u2019s comments, with Brent crude oil futures eventually settling around $81.88 around 9 a.m. EDT on Tuesday morning.<\/p>\n News Peg<\/p>\n Stock futures rose before markets opened on Tuesday. The Dow Industrial Average closed at a new record high on Monday, and the S&P 500 just below its last record high set in June. The index broke that record shortly after markets opened on Tuesday<\/p>\n Crucial Quote<\/p>\n \u201cOnce the strait reopens, there are hundreds if not a thousand ships sitting in there waiting to go out,\u201d Bessent said, referring to ships trapped in the waterway during the months-long conflict that began on February 28. \u201cIt\u2019s not just energy, it\u2019s fertilizer, it\u2019s refined products, it\u2019s various industrial gasses, so I think that we could see a big relief trade as those prices go down.\u201d<\/p>\n Contra<\/p>\n Although Bessent insisted a future deal would include \u201cfreedom of movement,\u201d a Reuters<\/a> report published on Tuesday morning said Iran was expecting to maintain control of inbound traffic in the Strait of Hormuz in a deal being negotiated with Oman, citing an Iranian source. Outbound traffic would take a route between the two countries, and Iran would maintain oversight on those traffic lanes as well. <\/p>\n Key Background<\/p>\n