economy
U.S. Oil Slips Below $100 as Trump Demands Reopening of Strait of Hormuz
U.S. President Donald Trump on Thursday warned Iran to "stop now" if it was charging tankers to transit the Strait of Hormuz.
TL;DR
- Oil prices dropped below $100 per barrel amidst tensions around the Strait of Hormuz.
- The Strait of Hormuz, which handles 20% of global oil supply, remains largely closed to shipping.
- President Trump warned Iran to stop charging tankers and reopen the strait, linking it to a ceasefire deal.
- Attacks on Saudi Arabia's energy infrastructure have cut oil output by about 600,000 barrels per day and impacted pipeline flows.
- The CEO of DUCAT Maritime described the situation in the Strait of Hormuz as chaotic and uncertain, with high off-the-record costs for transit.
- Buyers may need to rely on stockpiles and alternative supplies for at least another month due to reduced Gulf imports and extended voyage times.