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President Trump has warned Iran of severe consequences if the Strait of Hormuz does not reopen imminently, as international oil prices decline to their lowest levels in three weeks. The threat comes as senior U.S. officials report meaningful progress in diplomatic negotiations aimed at restoring maritime traffic through the critical waterway, which handles roughly one-fifth of global daily oil and liquefied natural gas supplies.
Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both indicated that discussions with Iran and Oman, acting as mediator, have advanced considerably. Bessent suggested a potential agreement could materialize within days, specifically mentioning Wednesday as a possible resolution date. The optimistic outlook prompted immediate market reactions, with Brent crude dropping nearly 5% to below $80 per barrel and West Texas Intermediate falling over 5% to $76 per barrel—their lowest prices since mid-July.
The Strait of Hormuz has remained largely closed since the conflict began in late February, with Iran halting most shipments while the U.S. maintains a naval blockade of Iranian ports. Alternative shipping routes have become increasingly perilous, with recent vessel attacks reported in the region. Consumers worldwide face elevated fuel prices as a result, with UK petrol averaging £1.60 per liter and U.S. gasoline exceeding $4 per gallon.
While American officials express confidence in negotiations, Iran maintains it is not directly engaging with Washington and continues talks exclusively through Oman. The volatile situation has generated substantial profits for major oil companies but underscores the fragility of achieving lasting diplomatic resolutions.
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