U.S. crude oil prices dropped by 2.7% on Monday, reaching around $74 per barrel. This decline followed an announcement from Treasury Secretary Scott Bessent regarding a 60-day waiver on sanctions related to the purchase of Iranian oil. It marks the first instance of crude prices falling under $75 since early March.
International Brent crude also experienced a decline, falling 4% to approximately $77 per barrel. Both U.S. and Brent prices stay above their prewar levels, which were $62 and $68 per barrel, respectively.
Kpler’s data from the Strait of Hormuz revealed a decrease in crossings, showing 17 on Sunday, down from 35 on Saturday and 19 on Friday. In a statement shared on social media, Bessent mentioned Iran’s commitment to maintaining free and open transit through the Strait of Hormuz.
While there is optimism in markets, it might be premature due to ongoing negotiations and instability in the region. Iran had threatened to close the strait again due to continued Israeli attacks in Lebanon.
Ship traffic in the Strait of Hormuz showed signs of recovery over the weekend. The data group recorded an average of 23 transits per day from Friday to Sunday, a rise from single-digit numbers during April’s conflict peak. However, this is still below the prewar daily average of 130 vessels.
Kpler data revealed 17 crossings on Sunday, 35 on Saturday, and 19 on Friday. Many ships used routes designated by Iran or turned off their transponders to navigate.
Commodity prices are also shifting. According to Argus, the price of urea, essential for fertilizer production, has decreased by 50% from peak April levels.