Crude Oil Prices Plummet as Strait of Hormuz Talks Progress

Crude oil prices plummeted on Thursday as tensions in the Middle East eased following President Trump's decision to call off planned strikes on Iran. The Strait of Hormuz, a critical waterway for global oil shipments, may soon be reopened as negotiations between Iran and Oman make progress.

The decline in crude prices is partly due to robust supplies in China, which may reduce Chinese purchases in the near term. According to data from Kpler, China's crude inventories remain abundant, with supplies falling by only 54 million barrels since early May to around 1.2 billion barrels.

However, Ukrainian drone attacks on Russian oil infrastructure are supporting prices, as Russia's refining capacity has plunged following damage to facilities. The strikes have deepened a nationwide gasoline shortage in Russia, with several major refineries shut down and the government banning almost all gasoline, jet fuel, and diesel exports.