Oil prices drop near $70 a barrel - lowest level since before Iran war - on hopes for Strait of Hormuz plan

Key Points:

• Oil prices dropped significantly, with Brent crude falling 3.1% to $73.13 a barrel and West Texas Intermediate crude sliding 3.8% to $70.43, as traders welcomed an evacuation plan for vessels trapped in the Strait of Hormuz.
• The International Maritime Organization announced that Iran and Oman will coordinate a large-scale evacuation of over 11,000 stranded seafarers, raising hopes for a quicker normalization of global energy supplies amid ongoing US-Iran negotiations.
• US gasoline prices have declined for six consecutive weeks, now averaging $3.93 per gallon, though President Trump accused oil companies of price gouging and instructed the DOJ to investigate the issue.
• Experts caution that gasoline prices may not immediately reflect the drop in crude oil prices due to a two-week lag and other supply chain factors, with full normalization of tanker traffic and repairs to Middle Eastern energy infrastructure potentially taking months to years.
• Optimism remains as some vessels have already exited the Strait of Hormuz following a US-Iran memorandum of understanding, and Iran reportedly confirmed there will be no tolls or charges for ships passing through the strait.