Bessent says there may be deal Tuesday or Wednesday to open Strait of Hormuz with 'freedom of movement'

The Strait of Hormuz is a critical waterway for global oil exports, and any disruption to shipping through the strait can have significant impacts on the global economy. A deal to open the strait with "freedom of movement" would be a welcome development for oil markets, which have been on edge due to tensions in the region.

The strait is a vital transportation route for oil exports from the Middle East, with around 20% of the world's oil supply passing through it. Any closure or restriction on shipping through the strait can lead to increased oil prices, as witnessed in the past when tensions between Iran and the US escalated. A deal to ensure freedom of movement would help alleviate these concerns and provide stability to oil markets.

To watch next: The details of the potential deal and its implementation. If a deal is reached on Tuesday or Wednesday, as suggested, it will be crucial to see whether it addresses the underlying issues driving tensions in the region and whether it provides a lasting solution to ensure the free flow of oil through the strait. Additionally, market participants will be watching for any reaction from Iran and other regional players to the deal, and how it may impact the global oil market in the coming days and weeks.

Originally reported by cnbc.com. ExpoNews adds analysis for finance & markets readers.