U.S. says Strait of Hormuz is 'free and open' as Bessent says deal with Iran is close

• U.S. Central Command has assisted over 1,000 vessels through the southern route via Omani territorial waters despite Iranian aggression; talks mediated by Pakistan and Oman may finalize reopening agreement this week
• Brent crude oil fell 5.3% to around $79.70 per barrel following Bessent's comments about a potential deal, while WTI dropped 5.7% to approximately $75.95
• Trump administration denied reports of severely depleted missile stockpiles, with the White House claiming the U.S. has 'more than enough munitions' despite reports of 80% depletion of THAAD interceptors and most Army precision missiles

Summary: U.S. Confirms Strait of Hormuz Open as Iran Deal Nears

Key Developments:

U.S. Central Command confirmed the Strait of Hormuz remains "free and open" for commercial vessels, with over 1,000 ships assisted through the southern route via Omani territorial waters despite Iranian aggression. This announcement follows Treasury Secretary Scott Bessent's statement that a deal with Iran could be finalized "today or tomorrow" to normalize the situation.

Market Impact:

Oil prices experienced significant volatility. Brent crude fell 5.3% Tuesday following Bessent's remarks, then recovered 0.43% Wednesday to $79.70 per barrel. WTI crude dropped 5.7% Tuesday before rising 0.21% to $75.95 Wednesday.

Diplomatic Efforts:

According to sources, negotiations between Iran and Oman are being mediated by Pakistan with indirect U.S. involvement. A senior Pakistan official indicated a reopening agreement is "close to being finalized." European countries and the U.S. are reportedly pressuring Oman to accept a temporary agreement.

Military Stockpile Controversy:

Reports surfaced claiming the U.S. military depleted most Army Tactical Missile Systems and Precision Strike Missiles, and exhausted nearly 80% of THAAD interceptors during the Iran conflict. President Trump and the White House strongly refuted these claims, asserting the U.S. has "far more munitions than anyone in the world" and defense production is at record levels.

Strategic Significance:

The Strait of Hormuz is a critical global oil transit chokepoint, making its operational status crucial for energy markets and international trade. The potential deal could significantly reduce geopolitical risk premiums in oil pricing.