Oil Price Falls as Strait of Hormuz Nears Return to Normal

Around 40 supertankers carrying an estimated 80 million barrels of oil are reportedly waiting to transit the Strait of Hormuz following the signing of a new memorandum of understanding. Oil prices have already fallen from war-driven highs above $120 per barrel to about $77 as supply concerns eased. The development matters because a resumption of tanker traffic could increase global oil supply and further reduce energy costs. Next, markets will watch whether these shipments begin moving through Hormuz, which could push oil prices closer to their pre-conflict levels near $67 per barrel.