Persian Gulf Tensions Ease, Crude Prices Fall Amid Ongoing Disruptions

Crude oil prices fell on Friday as tensions in the Persian Gulf eased slightly. The September WTI crude oil price dropped by 1% to $68.45 per barrel, while the RBOB gasoline price declined by 0.08% to $2.05 per gallon.

The market's concerns about a potential military conflict between the US and Iran in the Middle East were reduced after reports emerged that the Trump administration is considering using a naval blockade to apply economic pressure on Iran instead of launching new attacks.

Despite this, there was no progress reported on an agreement to reopen the Strait of Hormuz, which has been a major concern for global oil supplies. The Iranian military spokesperson stated that no ship can safely pass through the strait without Iran's authorization and supervision, contradicting President Trump's claim that the US has 'total control' over the strait.

The ongoing disruptions in the Middle East have led to a tightening of global crude supplies, boosting oil prices. However, the International Energy Agency (IEA) reported that the global oil supply deficit will worsen due to ongoing disruptions from the US-Iran war.