Global oil prices declined on Tuesday after United States President Donald Trump announced that a record 19 million barrels of crude oil passed through the Strait of Hormuz, easing concerns over disruptions to one of the world’s most critical energy routes.
In a post on his social media platform, Trump said the unprecedented volume of oil moving through the strategic waterway had helped calm markets and improve global security.
“19 million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling down, and the world is a much safer place,” Trump wrote.
Market data showed Brent crude slipped to $76.75 per barrel on Tuesday from about $77 on Monday, extending losses after recent gains driven by fears of renewed conflict in the Middle East.
The latest drop followed comments from US Vice President JD Vance, who disclosed that progress had been made in talks with Iran and confirmed that the Strait of Hormuz remained open to international shipping, easing fears of a major disruption to global oil supplies.
Oil prices had surged over the weekend, with Brent crude briefly climbing above $82 per barrel amid heightened tensions after Trump threatened fresh military action against Iran and Tehran signalled a possible closure of the vital shipping lane.
However, diplomatic efforts appeared to gain momentum after senior US and Iranian officials concluded a first round of negotiations in Switzerland on Monday.
The talks were held under a memorandum of understanding reached last week to extend a fragile ceasefire agreement for at least 60 days.
READ ALSO: Oil Prices Extend Decline On Iran Deal Hopes
In another development expected to increase crude supply to international markets, the US Treasury Department authorised Iranian oil sales through a general licence permitting the export of Iranian crude and petrochemical products until August 21.
Meanwhile, US Secretary of State Marco Rubio arrived in Abu Dhabi on Tuesday for meetings with Gulf allies aimed at reinforcing Washington’s commitment to regional security.
Speaking to reporters, Rubio stressed that the United States would ensure freedom of navigation through the Strait of Hormuz and rejected any attempt by Iran to impose tolls on vessels using the waterway.
“It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway,” Rubio said, adding that the principle was protected under international law.
Rubio is expected to hold discussions with Gulf leaders over the next two days as Washington seeks to reassure regional partners that the ceasefire arrangement with Iran will not strengthen Tehran’s influence or threaten maritime security in the Gulf.
The Strait of Hormuz remains a crucial artery for global energy trade, handling a significant share of the world’s oil exports.
Any threat to its operation typically triggers sharp movements in energy markets and raises concerns over global supply stability.