Oil prices fall as Strait of Hormuz set to reopen
Oil prices dropped below $80 a barrel as optimism grew over the promised reopening of the Strait of Hormuz. US President Donald Trump announced the strait would “completely open” once a peace agreement with Iran is signed in Switzerland. Iranian media reported that several oil tankers and cargo ships had already passed through the strait. Despite the price drop, analysts warned that market conditions could remain tight due to ongoing uncertainties.
What we know
- Brent North Sea crude fell 4.0 percent to $79.87 a barrel, hitting a three-month low before rebounding slightly.
- The main US oil contract, West Texas Intermediate, dropped 4.7 percent to under $77 a barrel.
- US President Donald Trump said the Strait of Hormuz would reopen after a peace agreement with Iran is signed.
- Iranian media reported that three oil tankers and two cargo ships had already passed through the strait.
- US strategic oil stockpiles sank last week to their lowest level since 1983, indicating sustained demand.
