Oil prices fell on Tuesday after a nearly 6% surge in the previous session, as signs emerged that the U.S. Navy is working to ease Iran’s closure of the Strait of Hormuz—a move that could allow oil supplies to resume from the Middle East’s key production region.
The United States launched a new operation on Monday aimed at reopening the strait to maritime traffic. Later, Maersk announced that the U.S.-flagged vehicle carrier “Alliance Fairfax” had exited the Gulf through the strait under U.S. military escort, easing some concerns over supply disruptions.
Brent crude futures for July delivery dropped by 68 cents, or 0.6%, to $113.76 per barrel at 01:00 GMT, after closing up 5.8% on Monday.
U.S. West Texas Intermediate crude fell by $1.59, or 1.5%, to $104.83 per barrel, following a 4.4% gain in the previous session.
Tim Waterer, Chief Market Analyst at KCM Trade, said the escorted departure of the Maersk-operated vessel helped ease immediate fears of supply disruption.
In an email statement, he added: “This shows that limited safe passage is possible under current conditions and helps alleviate some of the worst-case concerns regarding supply interruptions.”
However, he noted that the situation remains highly exceptional and does not yet represent a full reopening of the strait.
Reuters
