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Oil falls below $75 for the first time since March
NBC News • • nation
Key Points:
- U.S. crude oil prices dropped 2.7% to around $74 per barrel following a 60-day waiver of sanctions on Iranian oil purchases announced by Treasury Secretary Scott Bessent.
- Brent crude prices also declined 4% to about $77 per barrel, marking their lowest level since the Iran conflict began, though both U.S. and Brent prices remain above prewar levels.
- Bessent stated that Iran committed to free and open transit through the Strait of Hormuz, contributing to market optimism despite ongoing regional tensions and threats from Iran to close the strait again.
- Ship traffic through the Strait of Hormuz has increased recently but remains well below prewar averages, with many vessels using less transparent routes or turning off transponders for security.
- Prices of other commodities, such as urea fertilizer, have also decreased significantly, with urea prices falling 50% from April peaks, signaling a broader easing of war-related market pressures.
