US oil prices recorded their lowest level this Wednesday since the start of the war in the Middle East, after the market reacted to the gradual restoration of maritime transit through the Strait of Hormuz, one of the most important routes for global crude oil trade.
Texas Intermediate Oil (WTI), a benchmark in the United States, fell 3.9% and closed at US$70.34 per barrel. During the day it even traded below US$70, although it recovered part of the losses before the close. Brent, the international benchmark, also ended the session at its lowest level since the end of February.
The decline occurred after the specialized platform Kpler reported that maritime traffic through the Strait of Hormuz continues to recover. Currently, about 31 ships pass through it daily, a figure still lower than the average of between 100 and 120 ships that crossed that route before the conflict.
The International Maritime Organization (IMO), for its part, launched a plan to evacuate some 11,000 sailors who remain stranded in the area, while efforts to normalize navigation progress.
The market also reacted to the memorandum of understanding signed last week between the United States and Iran to reopen the strait and facilitate new negotiations on the Iranian nuclear program, with the aim of reaching a definitive peace agreement.
In the midst of the oil fall, US President Donald Trump criticized that the reduction in the price of crude oil is not yet reflected in the cost of gasoline for consumers. For this reason, he announced that he ordered the Department of Justice to investigate the large oil companies.
However, analysts pointed out that it is common for there to be a gap between the decrease in the international price of oil and the price that consumers pay at service stations. They also attributed the president’s statements to the political context prior to the midterm elections in the United States.
Risks persist for maritime trade
Although the reopening of the Strait of Hormuz has reduced pressure on energy markets, German insurer Allianz warned that geopolitical tensions continue to drive up shipping costs due to rising insurance premiums for ships and cargo.
According to the company, around 1,150 cargo ships, carrying cargo valued at approximately US$125 billion, remain waiting to resume normal operations in the Persian Gulf. Allianz considers that the conflict evidences a new stage of greater uncertainty for global supply chains, in which resilience will be increasingly important than cost efficiency.