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Oil prices fell Friday after President Donald Trump says Iran has authorized 10 tankers pass through the Strait of Hormuz this week as a “gift” to the United States, signaling an attempt to ease tensions in this critical shipping point.
International reference Brent crude futures fell 0.6% to $107.36 a barrel, while U.S. futures West Texas Intermediate Futures slipped 0.8% to $93.72 a barrel.
Speaking at a Cabinet meeting on Thursday, Trump described the development as a goodwill gesture from Tehran as part of what he called an ongoing diplomatic engagement.
“They said, ‘To show you that we’re real and we’re strong and we’re here, we’re going to leave you eight boats of oil … and they’re leaving tomorrow,'” Trump said, referring to Iran.
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Oil prices since the beginning of the year
He added that the cargo eventually increased. “They then apologized for something they said, and said, ‘We’re going to send two more boats.’ And [it] in the end there were 10 boats,” he said.
The comments appear to highlight remarks Trump made earlier this week, when he said Iran had “given us a gift” related to oil and gas, but did not provide further details at the time.
Markets are closely monitoring developments in the Strait of Hormuz, looking for signs of disruption or de-escalation, as tensions between Washington and Tehran continue to inject volatility into energy prices. The strait is a vital artery for global crude flows.
Trump’s remarks suggest that at least some oil shipments continue to pass through the waterway, which could ease immediate supply concerns.
However, analysts have warned that the oil market as a whole remains increasingly fragile, even as isolated shipments resume.
“The oil market did not underreact to the disruption in the Strait of Hormuz; it absorbed it,” said Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy.
“For nearly four weeks, markets have demonstrated remarkable resilience… supported by a combination of pre-war surpluses, crude-on-water and political barrels that provided a temporary buffer and kept prices under control. This phase is now coming to an end,” she said.
According to Rystad, the global system has gone from “buffered to fragile” after weeks of supply losses and reduced inventories, leaving little room to absorb further shocks.
Nearly 17.8 million barrels per day of oil and fuel transiting the Strait of Hormuz have been disrupted, the company estimated, with nearly 500 million barrels of liquids lost so far.