Iran is considering allowing European countries to remove naval mines from the Strait of Hormuz, a potential shift in its stance that could pave the way for restoring normal shipping through one of the world's busiest maritime routes, according to a report by Bloomberg.
The proposal could provide the global shipping and insurance industries with much-needed independent assurance that the waterway is safe after more than five months of military conflict.
It could also support the wider diplomatic efforts aimed at bringing the conflict to an end.
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However, any European demining mission would depend on several conditions. Iran would need to provide security guarantees for the naval vessels involved, while any ceasefire would have to remain in place long enough for the operation to proceed.
The proposal would also require the approval of Iran's powerful Islamic Revolutionary Guard Corps (IRGC), whose backing is seen as essential for any such mission to move forward.
Oil prices also fell sharply after U.S. Treasury Secretary Scott Bessent said the United States and Iran could reach an agreement as early as Tuesday or Wednesday to restore "freedom of movement" through the Strait of Hormuz, easing concerns over potential disruptions along one of the world's most important oil shipping routes.
Speaking to CNBC's Squawk Box, Bessent said talks between Washington and Tehran were making progress and that a deal could be finalised within days.
"We are in talks with the Iranians. There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict," Bessent said.
U.S. crude futures fell nearly 4% to below $77 a barrel after Bessent signalled the possibility of a breakthrough in talks over the Strait of Hormuz. This was the first time since July that prices had fallen below the $80-mark. However, at the time of this report's publication, the benchmark Brent remained just above $80.
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Asked whether Iran would be allowed to charge fees from commercial vessels using the strategic waterway, Bessent said the arrangement would ensure free passage. "It would be freedom of movement. Even though things are still a little dicey there over the past few days, we saw quite a few ships coming out even now," he added.
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