- Oil prices continued to slide during this session on Wednesday as concerns about supply disruptions eased, while investors kept an eye on developments in the Strait of Hormuz, one of the most crucial maritime passages for global energy trade.
Futures for Brent crude, set to deliver in August, dropped by 1.9% to $75.30 per barrel, hitting its lowest point since February 27, just a day before the U.S. and Israel launched their war against Iran.
August futures for West Texas Intermediate crude fell by 2.2% to $71.61 per barrel.
This decline came amid easing concerns about oil supply disruptions, prompting markets to reassess the geopolitical risks that had previously supported prices.
Trump attacks oil companies and calls for price cuts.
Meanwhile, U.S. President Donald Trump criticized oil companies for not lowering gasoline prices at the same pace that crude prices have fallen in recent days.
Trump mentioned in a post on Truth Social that big oil companies are not lowering fuel prices for consumers in line with the sharp drop in the oil prices they purchase, noting that crude prices are falling rapidly.
He added that consumers are being exploited, announcing that he instructed the Department of Justice to immediately investigate the matter and called for a quicker drop in gasoline prices.
However, Karen Young, a senior researcher at Columbia University's Center on Global Energy Policy, considered Trump's statements closer to political posturing, explaining that the gasoline pricing mechanism in the United States is more complex than just a direct link to crude oil prices.
Young clarified that fuel prices in the United States are also influenced by local and state taxes, which are elements added to the final price paid by consumers at gas stations.
He added that refiners play a pivotal role in the pricing process, noting that the transmission of lower crude prices to refineries and then to the end consumer typically takes several weeks.
The resumption of navigation eases supply chain pressures.
In the meantime, markets received positive signals regarding the gradual return of maritime navigation through the Strait of Hormuz to its normal state.
The International Maritime Organization stated that over 11,000 seafarers stuck in the Persian Gulf will begin to leave the region via the Strait of Hormuz after receiving the necessary security guarantees.
The Secretary-General of the International Maritime Organization, Arsenio Dominguez, confirmed that the necessary guarantees have been obtained and that safe navigation conditions have been fully verified to support the execution of these operations.
He added that these efforts are being carried out in close cooperation with Iran, Oman, and other coastal countries in the region, alongside the United States and the maritime shipping sector.
Aditya Rastgenia, CEO of Global Shipping at DHL, stated that supply chain pressures have increased recently due to long wait times for ships stuck in the Strait of Hormuz, as well as disruptions affecting air freight capabilities.
She explained that reopening the strait would alleviate a significant portion of these pressures, but warned that the return of global supply chains to normal levels will take some time before its effects are fully felt in the markets.
#OilMarket #iranvsamerica #war #dump #cryptouniverseofficial $CL
