Oil prices plummeted to 80 dollars this Monday after President Donald Trump announced over the weekend a peace agreement with Iran and the immediate reopening of the Strait of Hormuz, which will be free of tolls and Iranian aggression. It is worth noting that crude was at 100 dollars per barrel in mid-May.
The president declared yesterday afternoon that the Strait of Hormuz will be "permanently free of tolls" and pointed out that oil tankers have already begun to transit through this maritime route after peace was sealed between the two conflicting nations.
"Ships are starting to move, many of them loaded with oil, leaving the Strait of Hormuz. They are advancing along the "Highway" of the South, which is completely safe, protected, and clear. There are also other travel routes!!!", the president posted on his social media, Truth Social.
Meanwhile, the price of West Texas Intermediate (WTI), the U.S. benchmark, fell to 80.50 dollars per barrel on Monday morning. At the time of greatest fragility of the ceasefire announced in April, prices reached highs of over 100 dollars per barrel in mid-May and have been falling significantly since then. Over the weekend, as the peace agreement became more evident, the value dropped by 3 dollars.
Even with the Strait of Hormuz subject to attacks by the Iranian Revolutionary Guard - and thus, with global oil supplies disrupted - gasoline prices in the U.S. have been declining in recent weeks. Thus, the average price of a gallon of fuel in the U.S. dropped by 0.46 dollars this Monday compared to the previous month, according to reports from the relevant agency.
The price of oil plummeted following Trump's announcement of peace with Iran and the reopening of the Strait of Hormuz
