Strait of Hormuz Reopened Oil Tankers as Prices Fall

US  vs IRAN PEACE DEAL – (Web Desk) – Oil prices dropped on Friday after the strait of hormuz reopened oil tankers and ships began moving through the busy waterway again. This happened just after the US and Iran signed a peace deal to end their conflict. Traders now expect more oil to reach the world market soon.

Brent crude fell to around $79 a barrel. US oil, known as WTI, also slipped a bit. Prices had already touched their lowest point since early March, right after the peace deal was signed.

Three tankers from Saudi Arabia carrying about six million barrels of oil were among the first to pass through the strait. Experts believe this peace deal could free up more than 85 million barrels of oil that had been stuck in the Middle East. The US also plans to lift its sanctions on Iranian oil, adding even more supply to the market.

A market analyst said traders still want clear proof that ship traffic through the strait is back to normal before they make bigger moves. Almost one fifth of the world’s oil and gas used to pass through this strait before the war began.

Kuwait’s oil company has already lifted all the special war notices it had issued earlier. Iraq’s oil minister also said the country’s oil fields are ready to go back to full production soon.

Still, not everything looks calm. Israel continues its fight against Hezbollah in Lebanon, which raises doubts about how long the peace deal will hold. Adding to the worry, the US Vice President skipped a planned meeting with Iranian officials in Switzerland.

One energy expert said the current situation does not give the market much confidence that things will return to normal anytime soon.