Prices fell as an evacuation plan for vessels trapped in the Strait of Hormuz was announced. The U.S. and Iran are continuing talks towards a peace agreement.
Oil prices recently fell to nearly $70 per barrel as traders celebrated an evacuation plan for vessels trapped in the Strait of Hormuz.
As the United States and Iran continue talks towards reaching a peace agreement, Brent crude oil futures sank 3.1% to $73.13 per barrel.
This is the lowest level cost for oil since the day before the war with Iran began with U.S. and Israeli strikes on February 28. West Texas Intermediate crude also dropped 3.8% to $70.43 per barrel.
On Tuesday, the International Maritime Organization announced that Iran and Oman will start coordinating a large-scale evacuation of more than 11,000 stranded seafarers through the Strait of Hormuz.
Gasoline prices also fell for the sixth straight week in a row, hitting $3.93 per gallon on Wednesday according to AAA.
President Trump accused big oil companies of keeping prices high at the pump for working Americans.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged,’” the president wrote on social media.
“I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!”
Bethany Williams, spokesperson for the American Petroleum Institute, said that “gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories.”
The low price for gasoline is down from its recent high of $4.51 per gallon a month ago. Gas prices are roughly 70 cents higher than this time last year.
The United States and Iran are currently operating under a memorandum of understanding, which gives the two nations 60 days to reach a final agreement.
Some vessels have already been able to exit the Strait of Hormuz in the days following the signing of the memorandum of understanding.
President Trump announced that Iran had informed him that there will be no tolls, insurance costs, or charges for ships looking to travel through the strait.
