Oil prices fell sharply on Tuesday after Treasury Secretary Scott Bessent indicated there may be a deal to open the Strait of Hormuz as soon as this week.
Brent, the international oil benchmark, slid 5.3% to close at $79.36 per barrel. West Texas Intermediate futures lost 5.7% to settle at $75.77.
"We are in talks with the Iranians," Bessent told CNBC's "Squawk Box." "There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict."
"It would be freedom of movement," the Treasury Secretary said when asked whether Iran would be allowed to charge a toll.
Tehran is considering allowing European countries to clear mines from Hormuz, diplomats familiar with the matter told Bloomberg News.
President Donald Trump said over the weekend that he called off a major attack on Iran to allow for negotiations over Hormuz.
"Iran is unlikely to agree to any deal without getting control of the Strait, and thus we view any potential deal as being highly likely to fail at this point," said Ryan McKay, director of commodity strategy at TD Securities.
