On Monday, U.S. crude oil prices dropped 2.7%, reaching approximately $74 per barrel. This decline followed Treasury Secretary Scott Bessent’s announcement of a 60-day waiver on sanctions related to the purchase of Iranian oil. It marked the first instance of crude prices falling below $75 since early March.
International Brent crude prices similarly declined, falling 4% to around $77 per barrel. This represents a new low since the conflict involving Iran began. Despite these declines, both U.S. and Brent crude prices remain above prewar levels, which were $62 and $68 a barrel, respectively.
Data from Kpler highlighted a decline in vessel crossings through the Strait of Hormuz. There were 17 crossings recorded on Sunday, down from 35 on Saturday and 19 on Friday. In a statement shared on social media, Secretary Bessent noted Iran’s commitment to ensuring free and open transit through the strait.
Despite an optimistic outlook, ongoing negotiations and military tensions in the region could affect market stability. Over the weekend, Iran threatened to close the strait due to Israeli attacks in Lebanon.
While ship traffic through the Strait of Hormuz showed signs of recovery this weekend, volumes have not yet returned to prewar levels. Kpler, which tracks marine traffic, reported a daily average of 23 transits from Friday to Sunday. This is a notable increase from the single-digit levels at the height of the conflict in April, though it remains below the prewar average of 130 daily vessel crossings.
Most ships opt to use routes designated by Iran or deactivate their transponders while passing through the waterway. Kpler emphasized that maritime traffic had adapted by using less standard or less transparent routes rather than ceasing altogether.
In addition to oil, other commodity prices are approaching prewar figures. According to data from Argus, the price of urea, a vital fertilizer component, has decreased by 50% from its peak in April.
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