Oil prices fell on Thursday as tankers resumed transit through the Strait of Hormuz following a U.S.-Iran agreement to end the war. Brent crude dropped 0.54% to $73.34 a barrel, while U.S. West Texas Intermediate fell 0.38% to $70.07. Over 20 million barrels of oil exited the strait in the past 24 hours, according to U.S. Energy Secretary Chris Wright, who stated that Iran no longer has the ability to close the waterway.
The initial accord, reached last week, includes a 60-day negotiation period to address Iran's nuclear program. Wright emphasized that oil flows would continue even if the deal collapsed, as the U.S. could enforce passage by force. Iran's Revolutionary Guard Corps, however, warned that safe passage would only be permitted via Tehran-designated routes.
Oman opened temporary routes to ease tanker departures, while Qatar's prime minister held talks on future management of the strait. Analysts noted that the rapid decline in oil prices caught markets off guard, as supply concerns eased faster than expected. Citi projected Brent could fall to $60-$65 per barrel within six to 12 months as flows normalize.
The U.S. has also demonstrated its ability to block Iran's oil exports entirely, reducing them to zero during the conflict. President Trump previously threatened to impose tolls on oil passing through the strait if negotiations failed, though Vice President JD Vance acknowledged the remarks complicated discussions.
Meanwhile, some analysts argue the deal increases the risk of future conflict, particularly between Iran and Israel. Hezbollah has reportedly broadcasted invasion plans targeting northern Israel, raising concerns about regional stability.