By Eshioromeh Sebastian
Global oil prices witnessed a notable decline on Tuesday as a record 19 million barrels of crude successfully transited the Strait of Hormuz, signaling a temporary de-escalation in geopolitical tensions between the United States and Iran.
Brent crude futures fell to $76.75 per barrel, down from $77 per barrel on Monday, according to data from oilprice.com.
The dip follows a volatile weekend that saw prices spike to as high as $82.30 per barrel amid fears of a major supply disruption in the Middle East.
The development came as high-level officials from the US and Iran concluded their first round of talks in Switzerland on Monday.
The discussions, which began under a memorandum of understanding reached last week, are aimed at extending a fragile ceasefire that has been in place since April for at least another 60 days.
United States President Donald Trump confirmed the record oil flow in a post on his social media handles on Tuesday, attributing the subsequent price drop to the successful transit through the strategic waterway.
“19 million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling down, and the world is a much safer place,” Trump stated.
The easing of crude prices was further bolstered by comments from US Vice President JD Vance, who confirmed that progress had been made in discussions with Tehran and that the Strait of Hormuz remained open, effectively reducing fears of a global supply shock.
In a significant policy shift, the US Treasury Department on Monday authorised Iranian oil sales through a general licence that permits the sale of crude oil and petrochemical products of Iranian origin until August 21. The move is expected to boost global oil supply in the short term.
Meanwhile, US Secretary of State Marco Rubio arrived in Abu Dhabi on Tuesday to engage with Gulf allies. Addressing newsmen, Rubio reaffirmed Washington’s commitment to freedom of navigation through the Strait of Hormuz, dismissing Iran’s claims of a right to charge tolls on the international waterway.
“It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway. That’s existing international law,” Rubio asserted.
The US diplomat is scheduled to meet with Gulf allies on Wednesday in an effort to reassure them that the 60-day ceasefire deal struck with Iran will not embolden Tehran, while also reinforcing America’s commitment to regional security.
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