Persian Gulf Tensions Ease, Crude Prices Rebound Slightly

Crude oil prices have been undercut due to easing tensions in the Persian Gulf. September WTI crude oil (CLU26) is down -0.83 (-1.00%), and September RBOB gasoline (RBU26) is down -0.0026 (-0.08%).

No overnight reports of new military attacks by the US or Iran have been reported, reducing market concerns about the Middle East. The Trump administration's pivot to using a naval blockade as economic pressure on Iran instead of new military attacks has also eased tensions.

However, traffic through the Strait of Hormuz remains slow, tightening global crude supplies and boosting oil prices. Only an average of five vessels are transiting through the Strait, down from 14 ships a day seen after the US and Iran reached a memorandum of understanding in June.