Oil prices dropped after Trump announced an initial US-Iran deal to reopen the Strait of Hormuz, but shipping, insurance and mine-clearing hurdles could delay a return to normal. Analysts warn energy, fertiliser and consumer prices may remain under pressure for months.
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India lodged a “strong protest” with the United States after three Indian sailors were killed in a U.S. strike on the Palau-flagged M/T Settebello in the Gulf of Oman. U.S. forces also disabled two other tankers this week as part of a naval blockade linked to Iran.
U.S. forces struck a military site on Iran’s Qeshm Island after shooting down Iranian drones and missiles, while Iran said its attacks responded to U.S. action against a tanker. The clashes come as ceasefire negotiations remain stalled and shipping through the Strait of Hormuz is disrupted.
Oil prices fell sharply after Iran declared the Strait of Hormuz open amid a Middle East ceasefire, easing fears of supply disruptions. The announcement boosted global stock markets and lowered U.S. gasoline prices, though uncertainties remain about shipping security and ongoing U.S.-Iran tensions.
Despite a ceasefire between the US and Iran, traffic through the Strait of Hormuz remains far below normal levels, with only a handful of ships passing through the crucial oil shipping route. Iran’s restrictions and regional tensions continue to complicate safe passage.