President Donald Trump stated that Iran has assured the U.S. there will be no tolls or charges for ships navigating the Strait of Hormuz, a critical passage for approximately 20% of the world's oil traffic. This announcement follows a recent interim peace deal between the U.S. and Iran, which aims to end hostilities and reopen the Strait toll-free for at least 60 days.
Trump also mentioned that the U.S. would release some of Iran's funds, controlled by the U.S., to purchase food for Iran, specifically from American farmers. However, the deal has faced criticism from some Republican lawmakers who are concerned it may not be in the best interest of the U.S.
Shipping traffic through the Strait had stalled recently, and Iran and Oman are reportedly working on an agreement regarding navigation services in the area. Following these developments, oil prices fell, with Brent crude futures dropping 3% to $74.75 per barrel, marking a significant decline since the U.S. and Israel's airstrikes against Iran in February.
West Texas Intermediate futures also saw a nearly 3% decrease, trading at $71.03 per barrel. The situation remains fluid as Iran has yet to comment on Trump's statements