US Treasury Secretary Scott Bessent indicated that an agreement to reopen and stabilize commercial shipping through the Strait of Hormuz could be reached as early as Tuesday or Wednesday, offering a potential off-ramp from recent Gulf tensions that have rippled through global energy markets.

Speaking in a CNBC interview, Bessent said negotiations concerning the strategic waterway were advancing quickly and that a deal could be finalized within days. The Strait of Hormuz, situated between Iran and Oman, is one of the most critical energy chokepoints in the world, through which roughly a fifth of global oil consumption transits each day. It also serves as a vital transit route for liquefied natural gas, with Qatar — among the world's top LNG exporters — shipping the bulk of its cargoes through the waterway.

Despite the heightened risk environment, Bessent noted that maritime traffic through the strait has not ceased entirely. "We saw quite a few ships coming out of Hormuz even now," he said, acknowledging the dangers faced by commercial operators while underscoring that shipping activity persists. Iran has periodically threatened to close the strait during past periods of confrontation but has never fully followed through, partly because the waterway is central to its own oil export revenues.

The Treasury Secretary conceded that regional conditions have been difficult, citing the elevated geopolitical risks that have driven volatility across both oil and broader financial markets. His remarks are notable coming from the Treasury Department rather than the State Department, underscoring the degree to which energy security has become intertwined with macroeconomic policy, inflation dynamics, and financial market stability.

Nevertheless, he expressed confidence that a negotiated agreement would help stabilize conditions and unwind some of the risk premium currently embedded in energy prices.

"Expect energy prices to settle down," Bessent said, arguing that de-escalation would alleviate concerns about potential supply disruptions and strengthen the outlook for global trade flows.

Bessent further suggested that financial markets could react favorably to a successful diplomatic outcome. "We could see a big relief trade as those prices go down," he said, noting that lower oil prices could support risk assets while easing inflationary pressures that have been a focal point for both investors and central banks.

Market participants are now closely monitoring further developments from Washington, Tehran, and regional mediators. Any agreement on the Strait of Hormuz would carry significant implications for crude oil pricing, inflation expectations, and broader global market sentiment.