Trump May Not Like Emerging Deal on Hormuz

Oil prices fell and stocks climbed into record territory on Tuesday after US Treasury chief Scott Bessent said a deal to reopen the Strait of Hormuz was expected "today or tomorrow," reports the Wall Street Journal. Not much is confirmed about the deal, though the New York Times reports that Iran and Oman are close to hammering out an agreement that would route incoming ships through an Iran-controlled channel and outgoing vessels near Oman. The nations would share a "service fee"—not a toll, but that may be a matter of semantics— from traveling ships to cover security and environmental costs.

The Times notes that getting oil and cargo moving again would ease market pressure and deliver a badly needed political win for Trump, with a catch: The deal still being worked out appears to give Tehran more leverage over the international waterway than it had before the war began. As analyst Ali Vaez of the International Crisis Group puts it, Trump now faces a choice between "an unwinnable war and an unpalatable peace."