Oil Prices Plummet as Iran Allows Tankers Through Strait of Hormuz
Oil prices plummeted on Monday after Iran allowed several Iraqi oil tankers to pass through the Strait of Hormuz, following recent talks between the two countries. Despite this development, crude prices remained above last week's levels and could see further gains due to concerns over tighter US sanctions on Iran.
The Brent crude futures fell 1.77% to $91.08 a barrel by 12:10 PM (16:10 GMT) on Monday, while U.S. West Texas Intermediate crude futures declined 2% to $85.30 a barrel. The decline came after several Iraqi oil tankers were allowed to pass through the Strait of Hormuz.
Iranian officials have threatened to halt all oil exports through the waterway and elsewhere in the Persian Gulf if economic pressure continues. Treasury Secretary Scott Bessent warned that an 'economic D-Day' was approaching for Tehran, with intensified economic pressure on Iran as the standoff over the Strait of Hormuz continued.