Crude Oil Prices Ease as Strait of Hormuz Route Gets Busy
Crude oil prices eased Friday as signals from the US administration that it does not intend to wage an “indefinite war” with Iran, and reports that oil shipments through the Strait of Hormuz were continuing, helped offset concerns over elevated geopolitical risks.
International benchmark Brent crude futures for November delivery were trading at $95.55 a barrel, down 0.03% from the previous close of $95.52. US benchmark West Texas Intermediate (WTI) crude futures for October delivery fell 0.3% to $91.55 a barrel from $91.3.
US Vice President JD Vance said at a White House press briefing on Thursday that “all options” remained on the table over Iran, including military, economic and diplomatic measures. Still, he said Washington was not seeking an “indefinite war” with Tehran.
Vance also made clear that Washington was not currently negotiating with Tehran and would not resume talks unless Iran stopped attacks on commercial shipping.
He said the US was using military, economic, diplomatic, and other forms of pressure to protect commercial vessels and maintain the flow of oil and gas through the Strait of Hormuz.
Vance said about 15 million barrels of oil had passed through the strait despite the conflict. Reports that oil shipments through the Strait of Hormuz were continuing helped ease concerns over a prolonged disruption to global energy supplies.
CNN reported on Thursday, citing US officials, that US forces had enabled oil shipments through the Strait of Hormuz to continue at levels close to those seen before the conflict.
The officials claimed the US military had escorted 40 commercial vessels carrying a total of 18 million barrels of oil through the strait, while striking around 60 Iranian military targets during the operations.
Before the conflict, around 20 million barrels of crude oil and petroleum products passed through the Strait of Hormuz each day on average. Crude Oil Prices Decline as Trump Plans to End Iran War
