The United States and Iran could reach an agreement as early as Tuesday or Wednesday to reopen the Strait of Hormuz and restore unrestricted passage for commercial shipping, U.S. Treasury Secretary Scott Bessent said in an interview.

“We are in talks with the Iranians,” Bessent told CNBC.” “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.

U.S. crude oil futures fell about 3 per cent to below $78 per barrel following Bessent’s remarks.

He said prices are likely to decline further once hundreds of vessels stranded in the Persian Gulf are able to resume movement through the Strait of Hormuz.

“It’s not just energy. It’s fertilizer, it’s refined products, it is the various industrial gasses,” he said. “We could see a big relief trade as those prices go down.”

President Donald Trump said on Saturday that he had called off a major planned attack on Iran to allow negotiations aimed at reopening the Strait of Hormuz.

However, Trump has previously signalled that a deal to end the conflict was imminent, only for hostilities with Tehran to intensify again.