Oil Drops 5% as Trump Says Strait of Hormuz to Reopen Soon

Trump Says U.S. Is Holding ‘Very Good Discussions’ With Iran

President Donald Trump signaled that an agreement with Iran to reopen the Strait of Hormuz could be reached soon. One proposal would have Gulf and European countries, rather than ships using the route, bear transit fees.

In an interview with Fox News on August 4, Trump said the U.S. was having “very good discussions” with Iran. “The Strait of Hormuz will open soon, and if it doesn’t, Iran will face a powerful attack,” he said.

Other senior officials also indicated a deal with Iran was near. Secretary of State Marco Rubio told reporters at the State Department on August 4 that Oman and Iran were discussing ways to allow more ships to pass safely through the Strait of Hormuz in the short term while longer-term talks on denuclearization continue. The U.S. is involved in those talks, he added. Treasury Secretary Scott Bessent told CNBC the same day that an agreement to reopen the strait could be reached later on August 4 or on August 5, based on U.S. Eastern time.

More detailed proposals are also emerging on transit fees for the waterway. The Telegraph reported that Iran was considering a plan under which European countries would cover the cost of maintaining and managing the Strait of Hormuz through “voluntary contributions.”

International oil prices fell more than 5% on the day. Brent crude futures for October delivery settled at $79.36 a barrel on ICE Futures Europe in London, down 5.3% from the previous session and below $80 for the first time in about three weeks.

Kim Dong-hyun, Hankyung.com reporter 3code@hankyung.com