Crude Prices Dip as Persian Gulf Oil Transits Amid Ongoing US-Iran Tensions

Crude oil prices declined slightly on Wednesday as larger-than-expected volumes of crude oil were seen moving out of the Persian Gulf, despite ongoing hostilities between the US and Iran. The September WTI crude oil contract was down by 0.03% to -0.03%. Meanwhile, September RBOB gasoline prices rose by 0.69% to +0.0219.

Iran and Oman appear close to signing a deal to reopen the Strait of Hormuz, which would allow for safe transit of vessels through the waterway. The US Energy Secretary previously stated that 9 million barrels per day (bpd) crossed through the strait over the past seven days, exceeding expectations of 4 million bpd.

However, crude prices initially moved higher amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, which dampened prospects for a quick reopening of the Strait. The US is also planning to announce unprecedented economic measures against Iran, which would add to the current naval blockade of Iranian ports.