crude oil News Updates

Energy Secretary Chris Wright said, “These temporary suspensions of the Jones Act have been quite helpful for moving energy around our country.” 

Eight of the world’s largest shipping industry associations wrote, “Once such a precedent is established, it becomes increasingly difficult to resist similar measures elsewhere."

Closure of the strait, through which a fifth of the world’s oil and natural gas once passed, has driven up the price of fuel and basic goods far beyond the region, roiling the global economy.

Brent crude fell 5.4% to $79.25 a barrel. A day earlier, oil prices dropped more than 5% after President Donald Trump said he had decided to hold off on new strikes against Iran.

Oil supplies increased by 1.16 million barrels a day in July to an average of 19.44 million barrels a day, with the three Persian Gulf nations accounting for almost all of the gains.

As the conflict has dragged on, high oil prices have driven up the cost of gasoline, jet fuel and diesel, which has led to higher shipping costs.

Any agreement formalizing Iran’s control of the strait would mark a significant strategic victory for Tehran. For that reason, the U.S. could seek to block the deal by refusing to lift the blockade.

Crude prices are down dramatically from their peak earlier this year, but fuel prices have remained elevated.

Brent crude, the international standard, fell 5% to $83.49 per barrel. The retreat in oil prices was just the latest of many big swings since the U.S. and Israel attacked Iran in late February.

President Trump, who called the Iranian leadership “incredibly duplicitous,” said talks had taken place and more are scheduled, without providing any details.