Oil Prices Plummet as Hormuz Tensions Simmer

Oil prices retreated on Thursday, ending a five-day rally in US crude and a six-day advance in Brent. Investors weighed the prospects of reopening the Strait of Hormuz amid heightened tensions between Washington and Tehran.

US President Donald Trump said the United States had 'total control' over the Strait of Hormuz as negotiations between Washington and Tehran remained deadlocked.

The Trump administration is moving to increase economic pressure on Iran, including expanding sanctions and enforcing a naval blockade aimed at curbing Iranian oil exports. This raises the risk of further disruption to global energy supplies.

The International Energy Agency's latest monthly report warned of a 1.8 million barrels per day shortfall in the global oil market this quarter due to conflict-driven disruptions in the Middle East.