Energy secretary forecasts more price declines, says oil traffic through strait already back to 'normal'

Key Points:

• Secretary of Energy Chris Wright stated that oil traffic through the Strait of Hormuz has "already back to normal" following a U.S.-Iran preliminary agreement to reopen the waterway amid ongoing nuclear negotiations.
• The U.S. and Iran signed a memorandum of understanding, ending months-long stalemate in the Strait of Hormuz, through which about 20% of global oil supply transits; energy prices have since declined from a May peak.
• Despite Wright's claim, data on maritime traffic remain mixed, with U.S. Central Command reporting 55 merchant ship transits recently, while maritime firm Kpler noted lower numbers closer to 20-25 vessels daily.
• The U.S. waived sanctions on Iran's oil industry as part of the agreement, allowing Iran to sell oil globally again, but Wright emphasized that further frozen funds will only be released with meaningful progress in nuclear talks.
• Wright highlighted that President Trump accepted short-term energy price increases to prevent a nuclear-armed Iran, and while missile program destruction was initially a war objective, some missile possession by Iran may be tolerated if it becomes a "normal nation" in the Gulf community.