Oil Prices Hit Lows Since War's Start as Hormuz Traffic Resumes

Wall Street is showing resilience, shaking off fears of an artificial intelligence bubble and looking ahead to second-quarter earnings reports. Investors are also buoyed by an apparent agreement between Iran and the United States, which has contributed to a decline in oil prices.

The Brent crude benchmark has fallen below $75 per barrel, and West Texas Intermediate (WTI) has dipped below $70, marking the lowest points since the start of the Middle East conflict. This price drop is attributed to increased tanker activity in the Strait of Hormuz and reassurances from former President Donald Trump regarding transit fees.

Trump stated on his social media platform Truth that Iran has confirmed no tolls or fees are being charged to ships transiting the Strait of Hormuz. While a return to complete normalcy may take time, the increased traffic eases fears of a supply crisis, especially as U.S. oil inventories are at their lowest since 1984.

Despite the significant drop in crude oil prices, gasoline prices in the U.S. remain stubbornly high, having fallen only 14% compared to the 40% drop in crude. This disparity has led former President Trump to call on the Department of Justice to investigate the matter. The falling oil prices are also influencing investor sentiment, strengthening the belief that the Federal Reserve may decide against raising interest rates, which is boosting Wall Street stocks.