Dubai, UAE — A senior Trump administration official said a deal with Iran to restore shipping through the Strait of Hormuz could be reached as soon as “today or tomorrow”, raising hopes of a diplomatic breakthrough despite Iran publicly denying negotiations with Washington.
US Treasury Secretary Scott Bessent told CNBC there was “a chance we may have a deal” in the coming hours, echoing President Donald Trump’s optimism.
Speaking from the White House on Monday, Trump said this was Iran’s “last chance before decapitation”, combining renewed calls for diplomacy with military threats.
Conflict continues despite diplomacy
The United States and Iran have remained at war since surprise US-Israeli attacks on Iran on February 28. Although a ceasefire and a preliminary agreement have been reached in recent months, diplomacy has yet to end the conflict.
US Secretary of State Marco Rubio said Washington was involved in negotiations between Oman and Iran to increase shipping through the Strait of Hormuz.
However, Iran’s foreign ministry denied that negotiations with the United States were taking place.
Qatar, which has been mediating efforts, said diplomacy was continuing but that no direct Iran-US talks were planned. Emir Sheikh Tamim bin Hamad Al-Thani also spoke with Trump by phone on Tuesday about efforts to de-escalate tensions.
Washington is seeking the reopening of the Strait of Hormuz and the denuclearisation of Iran, although Trump acknowledged the nuclear issue could “take a little while”.
Oil falls on reopening hopes
Hopes that shipping through the strategic waterway could resume sent oil prices sharply lower.
Benchmark Brent crude fell more than six percent to below $79 a barrel as traders anticipated increased supplies reaching global markets.
The Strait of Hormuz remains a critical route for global oil and gas exports. Iran wants to control the waterway and impose tolls on shipping, a move strongly opposed by the United States.
Maritime attacks persist
Despite diplomatic optimism, security risks remained high.
Britain’s maritime security agency UKMTO said an unnamed cargo vessel was struck by an “unknown projectile” in the Strait of Hormuz off Oman on Tuesday, leaving one crew member missing.
Iran continues to enforce what amounts to a blockade of the strait, requiring ships to coordinate crossings with its authorities.
Red Sea disruptions continue
The instability in Hormuz has increased the importance of Red Sea shipping routes, where Yemen’s Iran-backed Houthi movement has declared a maritime blockade on Saudi Arabia.
Saudi Arabia has continued exports through its Red Sea port of Yanbu, bypassing Hormuz.
On Tuesday, the Indian vessel MSV Faize Noore Oliya sank off Yemen following an unattributed attack, although all crew members were rescued.
The Red Sea remains a vital gateway to the Suez Canal, with previous Houthi attacks during the Gaza war forcing many commercial vessels to divert around southern Africa.
