The United States says a deal to reopen the strategically vital Strait of Hormuz could be reached as early as Wednesday, raising hopes of easing tensions in the Middle East and stabilising global energy markets. US Treasury Secretary Scott Bessent revealed that Washington is engaged in discussions aimed at restoring normal shipping operations through the critical waterway.

Speaking in an interview with CNBC on Tuesday, Bessent said negotiations with Iran were progressing and could produce an agreement within the next 24 to 48 hours. He expressed optimism that reopening the strait would help move both sides toward a more stable phase in the ongoing conflict and reduce pressure on global oil supplies.

Addressing concerns about whether Iran would be allowed to impose fees on vessels using the route, Bessent said the objective of any agreement would be to guarantee “freedom of movement” rather than create new restrictions for international shipping.

The Strait of Hormuz remains one of the world’s most important energy corridors, handling a significant share of global oil and liquefied natural gas exports.Bessent’s remarks came a day after President Donald Trump suggested the waterway could reopen within hours after stepping back from threats of a major military strike against Iran. However, Tehran has publicly denied that direct negotiations with Washington are taking place, highlighting the uncertainty surrounding diplomatic efforts.

Despite hopes for a breakthrough, tensions remain high. Reports emerged Tuesday that an unidentified projectile struck a cargo vessel in the Strait of Hormuz, underscoring the fragile security situation.Nevertheless,Bessent noted that ships have continued to move through the area and predicted that energy prices would decline if a deal is reached, providing relief for economies and consumers around the world.