Oil prices fell more than 5% to a three-week low on Tuesday following comments from U.S. and Qatari officials. These remarks raised hopes for a diplomatic resolution to the Iran war, which could improve oil flows through the Strait of Hormuz. The drop in oil prices also contributed to the Dow Jones Industrial Average hitting another record high.
US Treasury Secretary Scott Bessent stated that a deal between the US and Iran regarding control of the Strait of Hormuz could be reached as soon as Tuesday, with the US indicating a deal could be reached today or tomorrow. This follows comments from President Donald Trump, who suggested the strait might reopen on August 4. Bessent told CNBC's Squawk Box that the US is currently in talks with the Iranians and that a deal may be reached in the coming hours.
Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both announced that talks have progressed to allow shipments to resume. Bessent emphasized that a deal would ensure freedom of navigation, specifically noting that he believes it would be freedom of movement rather than a toll on shipping.