WTI, Brent after Trump signals Strait of Hormuz easing tensions
Dwayne Schnell | 500px Plus | Getty Images
Oil prices fell on Friday after President Donald Trump said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week as a “gift” to the United States; This signaled a temporary easing of tensions at the critical shipping point.
International benchmark Brent crude futures decreased by 1.92% to $105.94 per barrel, while US West Texas Intermediate futures contracts decreased by 1.76% to $92.82 per barrel.
Speaking at a Cabinet meeting on Thursday, Trump described the development as a goodwill gesture from Tehran, which he described as ongoing diplomatic engagement.
“They said, ‘We’re going to give you eight boats of oil and they’re leaving tomorrow to show you that we’re real and solid and we’re there,'” Trump said, referring to Iran.
Oil prices since the beginning of the year
He added that shipping has grown as a result. “Then they apologized for something they said and said, ‘We’ll send two more boats.’ And [it] “In the end, there were 10 boats,” he said.
The comments appear to shed light on remarks Trump made earlier this week in which he said Iran “gave us a gift” regarding oil and gas, but did not provide further details at the time.
As tensions between Washington and Tehran continue to cause volatility in energy prices, markets are closely monitoring developments in the Strait of Hormuz for signs of disruption or de-escalation. The strait is a vital artery for global crude oil flows.
Trump’s remarks suggest that at least some oil shipments are continuing to move through the waterway, potentially easing immediate supply concerns.
But analysts have warned that the broader oil market will remain increasingly fragile even if isolated shipments continue.
“The oil market did not react adequately to the disruption in the Strait of Hormuz; it absorbed it,” said Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy.
“For nearly four weeks, markets have shown extraordinary resilience, supported by a combination of the pre-war surplus, over-water crude and policy barrels that provided a temporary buffer and kept prices in check. This phase is now coming to an end,” he said.
According to Rystad, the global system has moved from “buffered” to fragile after weeks of supply losses and stock draws, leaving little room to absorb further shocks.
According to the company’s estimate, the flow of approximately 17.8 million barrels of oil and fuel per day through the Strait of Hormuz has been interrupted, and a total of nearly 500 million barrels of liquid has been lost so far.
