Oil prices fall over 3% as 20 million barrels exit the Strait of Hormuz following a temporary US-Iran agreement.
West Texas Intermediate crude fell to $70.20 per barrel, its lowest since early March, as shipping through the Strait of Hormuz normalizes. The decline erases most of the war-driven gains amid easing supply disruption fears and expectations of additional Iranian crude entering global markets.
The US Energy Secretary reported 72 ships carrying 20 million barrels exited the strait in the last 24 hours. However, full normalization may take weeks, with final negotiations still unresolved over Iran’s nuclear program and potential toll charges on vessels.
US crude inventory data showing a sharp drop provided little support, as broader supply concerns outweighed the bullish signal. President Trump warned talks could collapse if Iran proceeds with toll plans.