U.S. oil futures: Oil price crashes after Donald Trump makes shocking Strait of Hormuz decision
Trump said Tuesday that the blockade will remain in effect while the operation to reopen the Strait of Hormuz is halted. WTI closed with a 3.9% loss on Tuesday, after the ceasefire was maintained despite mutual ceasefire news, while Brent closed at $109.87, down 4%.
Crude oil inventories fell by 8.1 million barrels in the week ending May 1, the sources said on condition of anonymity. Sources said that gasoline stocks decreased by 6.1 million barrels compared to a week ago, and distillate stocks decreased by 4.6 million barrels.
The war has killed thousands and shaken the global economy as it spread beyond Iran to Lebanon and the Gulf. Even if the conflict ends immediately, it will take three to four months to face its consequences, the head of the International Monetary Fund said on Tuesday.
Rubio said 10 civilian sailors were among those killed in the ongoing conflict, adding that crews on ships stranded in the waterway were “starving” and “isolated.”
Trump told reporters in the Oval Office that the Iranian army had become small enough to fire “peashooters” and that Tehran wanted peace, despite harsh public voices.
The conflict is also weighing on the Trump administration ahead of crucial midterm elections in November, as rising gas prices trickle into voters’ pockets.
Trump said the US-Israeli strikes were aimed at eliminating what he called imminent threats from Iran, citing Iran’s nuclear and ballistic missile programs and its support for Hamas and Hezbollah.
Diplomatic efforts to end the conflict have not yet yielded results. U.S. and Iranian officials held a round of face-to-face peace talks, but attempts to hold more talks failed.
Iranian Foreign Minister Abbas Araqchi said that peace talks continue with the mediation of Pakistan.
His ministry said he will travel to Beijing on Tuesday to meet with his Chinese counterpart. Trump is also expected to visit China this month.
