Key market concerns over shipping disruptions in the Strait of Hormuz have eased, leading to a decline in international oil prices. Former U.S. President Donald Trump has urged the Department of Justice to investigate fuel pricing, accusing oil companies of price gouging and exploiting consumers. August Brent crude futures have fallen to their lowest level since before the U.S.-Israel airstrikes on Iran.
As numerous tankers began transiting the Strait of Hormuz, the market widely perceived that the peak period of supply tightness for Middle Eastern crude has passed, leading to a drop of approximately 4% in global oil prices on Wednesday. West Texas Intermediate crude touched a low of $69.63 per barrel during the session, breaching the $70 mark for the first time since March 2. The latest quote shows a 4% decline to $70.22 per barrel.
The international benchmark, Brent crude futures, fell by 4.2% to $73.83 per barrel, marking its lowest price since before the U.S. and Israeli airstrikes on Iran on February 28. Former President Trump publicly criticized oil companies on Wednesday, stating that while crude prices have recently fallen significantly, gasoline prices at the pump have not decreased correspondingly.
In a post on his social media platform, Trump stated, "The cost of crude oil for major petroleum companies has plummeted, yet retail prices at gas stations have not adjusted accordingly. Oil prices have crashed!" He added, "In simple terms, companies are price gouging and exploiting consumers. I have directed the U.S. Department of Justice to launch an immediate investigation. Gasoline prices must come down much faster than they currently are!"
A request for comment has been made to the U.S. Department of Justice, and an official response is awaited. Karen Young, a senior research scholar at Columbia University's Center on Global Energy Policy, commented that such statements are merely "political theater," noting that the U.S. refined product pricing mechanism is not that straightforward.
She stated in an interview, "Gasoline prices at U.S. stations include state and local taxes. After refineries obtain cheaper crude oil, it takes several weeks for the cost reduction to be fully transmitted: first reflected in refinery gate prices, and ultimately to the final retail price." The market also received a boost from the gradual normalization of shipping traffic through the Strait of Hormuz.
The International Maritime Organization indicated that, following the securing of safe passage guarantees, over 11,000 seafarers currently stranded in the Persian Gulf will be evacuated in batches via the Strait of Hormuz. IMO Secretary-General Arsenio Dominguez issued a statement saying, "We have fulfilled all safety guarantee clauses and completed a comprehensive verification of safe passage conditions. We will ensure the smooth operation of this maritime evacuation."
He noted that this evacuation operation will be coordinated with Iran, Oman, all coastal states in the region, the United States, and the global shipping industry. Aditi Raskinha, CEO of DHL Global Forwarding Greater China, mentioned in a financial program that the previous backlog of vessels in the Strait of Hormuz had extended shipping cycles, while limited air cargo capacity intensified pressure on global supply chains.
She stated, "With the strait reopening, most supply chain pressures are expected to ease. However, it will still take some time for the entire supply chain to fully return to normal."
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