WASHINGTON — President Donald Trump issued a direct warning to Iran on Tuesday, declaring the Strait of Hormuz would open "very soon" or the United States would "hit very hard." His comments to Fox News coincided with a drop in global oil prices, driven by optimism over potential de-escalation talks.
Brent crude, the international benchmark, fell nearly 5 percent to trade under $80 a barrel. U.S. West Texas Intermediate prices fell more than 5 percent, reaching $76 a barrel. Both contracts registered their lowest levels since July 13.
Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both said discussions had progressed, potentially allowing shipments to resume through the waterway later this week.
Rubio told reporters at the State Department that while progress had been made in talks with Iran and Oman regarding ship transit, a final agreement had not yet been secured. He said a resolution was hoped for shortly.
Bessent, speaking to CNBC, said a deal to reopen the Strait of Hormuz could materialize as early as Tuesday or Wednesday. He emphasized the importance of ensuring freedom of movement for vessels.
Iran's foreign ministry, however, said it was not negotiating with the United States and had no plans for such discussions. A spokesman confirmed positive talks were underway with Oman, a key mediator, concerning a new mechanism for vessels traversing the strait.
Qatar, another central mediator between Washington and Tehran, said it was continuing efforts with other parties to achieve a diplomatic resolution. Qatari officials acknowledged no direct talks between the United States and Iran were currently scheduled.
The Strait of Hormuz handled approximately one-fifth of daily global oil and liquefied natural gas supplies before the conflict began in late February. Since then, Iran has largely halted traffic through the strait, while the United States has maintained a naval blockade of Iranian ports in the region.
The conflict has contributed to volatility in oil markets, driving higher fuel costs for motorists worldwide. Previous rounds of de-escalation talks have failed to yield lasting agreements.
Adding to regional shipping challenges, Yemen's Iran-backed Houthis imposed a blockade on Saudi Arabia's ports in the Red Sea on July 20. That route had become an increasingly dangerous alternative for vessels, with a recent spate of attacks reported in the past week.
Trump, speaking from California, said Iran was eager to finalize a deal to end months of conflict. "We're having very good discussions," he said. U.S. Central Command confirmed the southern route through the Strait of Hormuz remained open for all commercial vessels.
Two sources with direct knowledge of the matter told CBS News that the United States has used nearly all of its global stockpile of long-range precision missiles.
