On Friday, U.S. crude oil prices dipped below $70 a barrel as traders expressed optimism about tanker movements through the Strait of Hormuz, despite Iran’s recent attack on a cargo ship that halted mass evacuations.
West Texas Intermediate crude saw a decline of 3.4%, settling at $69.46 per barrel, while the global benchmark Brent crude fell by 3.1%, priced at $72.18 per barrel.
The average gas price in the U.S. reached $3.90 per gallon, marking a 13% decrease over the last month and a significant drop from the $4.56 peak earlier this year, as reported by AAA.
Shortly after an Iranian strike on a Singaporean cargo ship in the strait on Thursday, the regime issued a warning to enforce “action” against those not adhering to its approved route in the waterway.
In response to the attack, the International Maritime Organization (IMO) announced a temporary halt to evacuations for vessels navigating the strait, clarifying that the attacked ship was “not operating under the IMO evacuation framework.”
“After launching the IMO’s evacuation plan, which has successfully cleared several vessels, we’ve decided to temporarily suspend its execution to ensure that safety guarantees are upheld,” said IMO Secretary-General Arsenio Dominguez in a statement.
Recently, the U.S. and Iran signed a memorandum of understanding that officially reopens the strait, giving both nations a 60-day window to finalize an agreement.
A new U.N.-endorsed shipping route was established along the Omani coast for vessels stuck in the strait for over 100 days, following an agreement between the U.S. and Oman on Tuesday. However, Iran contended that this route was introduced without its consultation.
Sources indicate that around 26 ships utilized the Oman route on Wednesday, while about 15 opted for the Iranian path, a stark contrast to pre-war averages of 135 vessels per day.
Traders seem cautiously optimistic as they celebrate the renewed tanker traffic after an extensive closure of this vital strait, which typically handles 20% of the global oil supply. This disruption has prompted one of the worst energy supply crises in history.
This week, U.S. crude prices dropped nearly 8%, approximately $5, following the departure of ships from the Persian Gulf. However, experts caution that it might take months for gasoline prices to dip below the $3 mark.
Tensions between the U.S. and Iran remain high as efforts continue toward a formal peace agreement that would include the unfreezing of Iranian assets.
President Trump and Vice President J.D. Vance argued that Iranian funds would be used solely for purchasing agricultural goods and medical supplies from the U.S., suggesting that billions of unfrozen Iranian assets could provide financial benefits to American farmers.
However, Iran’s parliament speaker dismissed these assertions on Thursday.
