Oil prices extended their decline on Thursday after Vice President JD Vance told reporters that tankers carrying more than 12 million barrels had crossed the Strait of Hormuz overnight.
By early afternoon, WTI futures were down about 2% at $75.27 a barrel, with Brent crude not far behind at $78.11 — a decline of 1.8%. Speaking to reporters at the White House, Vance said Iran had refrained from firing on vessels for a second consecutive night. “So far they are honoring their end of the commitment,” he added.
The agreement, signed Wednesday between President Donald Trump and Iranian President Masoud Pezeshkian, requires Iran to permit toll-free passage through the strait for 60 days in exchange for the U.S. lifting its naval blockade. Vance said CENTCOM allowed more than a dozen ships through the blockade. “We’re also honoring our end of the early part of the agreement,” he said.
Before the conflict, the strait handled roughly 14 million barrels of crude and about 6 million barrels of refined products daily, according to CNBC.
The price declines follow a broader retreat in oil markets that accelerated after the U.S.-Iran interim agreement paved the way for a potential reopening of the strait. The International Energy Agency’s June oil market report, released Wednesday, noted that North Sea Dated crude prices had already collapsed by more than $40 a barrel during May through mid-June to around $82 a barrel, with ICE Brent futures trading at roughly $81 a barrel at the time of writing — still about $20 a barrel above where they began the year.
The IEA’s June report cautioned that continued drawdowns could push global stockpiles to levels not seen historically, with a shift to surplus not expected until late in the year — even as inventories have shed roughly 3.8 million barrels per day since fighting began.
SOURCE: finance.yahoo.com
