Crude falls after 19m barrels cross Hormuz Strait

Oil prices have seen a decline as a record volume of crude oil flowed through the Strait of Hormuz, U.S. President Donald Trump announced. Trump stated that 19 million barrels of oil exited the strategic waterway on Monday, an all-time record, contributing to tumbling oil prices and a perceived safer global environment.

The drop in oil prices followed reports of progress in discussions between the United States and Iran, which eased concerns about potential supply disruptions. Brent crude fell to $76.75 per barrel on Tuesday, down from $77 the previous day. This decrease occurred after earlier price increases over the weekend, which were driven by renewed tensions and threats of military action against Iran, coupled with Tehran's announcement of closing the waterway.

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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.

High-level talks between U.S. and Iranian officials concluded their first round in Switzerland, mediated by third parties. These discussions were part of a memorandum of understanding to extend a fragile ceasefire. Additionally, the U.S. Treasury Department authorized Iranian oil sales through a general license, permitting the sale of crude oil and petrochemical products until August 21, a move expected to boost oil supply.

U.S. Secretary of State Marco Rubio arrived in Abu Dhabi to meet with Gulf allies, aiming to reassure them of Washington's commitment to their security and its firm stance in peace negotiations with Iran. Rubio emphasized that freedom of navigation through the Strait of Hormuz would be maintained and that no country would be permitted to charge tolls on this international waterway, asserting that such actions are contrary to existing international law.

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It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway. That’s existing international law. That’s the way it is in international waterways all over the world, and that’s the way we expect it’ll be here.