Oil prices were nearing $80 per barrel on Monday, down from over $100 per barrel in mid-May as President Donald Trump this weekend said a peace deal was nearing.
Trump told the New York Times on Sunday afternoon that the Strait of Hormuz would be "permanently toll-free." On Monday, he said that oil tankers were beginning transit through the strait in the wake of an announced peace agreement to end the Iran war.
"Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz. They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine. There are other areas of travel, also!!!" he posted on Truth Social.
The West Texas Intermediate price of oil, the American benchmark, was down to $80.50 per barrel on Monday morning. During the conflict, prices reached highs of over $100 per barrel in mid-May and have been largely falling ever since. Over the weekend, they fell over $3 per barrel as a peace deal started to appear more likely.
Gasoline prices will take time to respond to any changes in the global supply, but the average price of a gallon of gas in the U.S. was down $0.46 per gallon on Monday from a month earlier, according to AAA.
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