US Energy Secretary Chris Wright has cautioned oil traders against anticipating a diplomatic breakthrough regarding the Strait of Hormuz, even as Iran moves to propose a shipping agreement with other Gulf nations. In an interview on Sunday, Wright stated that it is clearly not a wise move to expect a mutually agreed deal with Iran at this point in time. He emphasized that the market must continue to depend on alternative transport routes, which he estimates are still moving around 10 million barrels of crude oil and petroleum products daily.

According to Wright, the current global oil market supply is tighter than preferred, though not excessively strained. His remarks come as Iran is set to officially unveil an agreement on Monday concerning a temporary shipping lane through the Strait of Hormuz, following a series of intense diplomatic efforts, including a rare meeting between senior officials from Tehran and Abu Dhabi.

Wright made these comments in Vienna, where he plans to deliver a stern warning to Iran at the International Atomic Energy Agency. The UN nuclear watchdog's annual general conference is scheduled to commence on Monday. Wright expressed that Tehran's nuclear program will come to an end "no matter what."