US Crude Falls Below $70 as Tankers Continue Transit Through Hormuz

Oil prices extended their decline on Wednesday, with U.S. crude briefly falling below the $70-per-barrel mark, as the uninterrupted passage of oil tankers through the Strait of Hormuz eased fears of a prolonged supply disruption in the Middle East.

West Texas Intermediate (WTI) futures dropped nearly 4% during trading, touching an intraday low of $69.63 per barrel, the first time the benchmark has traded below $70 since March 2. WTI was last trading at $70.22 per barrel, down approximately 4% on the day.

Meanwhile, Brent crude, the international benchmark, fell 4.2% to $73.83 per barrel, reaching its lowest level since before the United States and Israel launched airstrikes against Iran on February 28.

Latest Oil Prices:

WTI Crude • 70.58 -2.63 -3.59%

Brent Crude • 74.10 -2.98 -3.87%

Murban Crude • 67.24 -2.39 -3.43%

WTI Midland • 71.00 -2.67 -3.62%

Opec Basket • 80.26 -1.33 -1.63%

Indian Basket • 2 days 75.28 -3.10 -3.96%

Natural Gas • 3.192 +0.045 +1.43%

Gasoline • 2.863 -0.096 -3.23%

Heating Oil • 3.162 +0.007 +0.24%

Market sentiment improved as oil tankers continued navigating the strategically critical Strait of Hormuz without major interruptions, reducing concerns that regional tensions would significantly disrupt global energy supplies. The waterway remains one of the world's most important maritime routes for crude oil shipments.

The decline in crude prices also sparked political debate in Washington. U.S. President Donald Trump criticized major oil companies for what he described as a failure to pass lower crude costs on to consumers through reduced gasoline prices.

In a post on Truth Social, Trump argued that gasoline prices at the pump were not falling in line with the sharp drop in crude oil prices.

"Oil prices are down significantly, yet consumers are not seeing equivalent relief at the gas pump," Trump wrote, adding that he had directed the Department of Justice to investigate the matter immediately.

The president further claimed that consumers were being unfairly charged and called for gasoline prices to decline more rapidly.

However, energy analysts questioned the premise of the criticism. Karen Young, a senior research scholar at Columbia University's Center on Global Energy Policy, characterized the remarks as a political maneuver rather than an accurate reflection of how fuel prices are determined.

Speaking to CNBC's Access Middle East program, Young noted that gasoline prices in the United States are influenced by a range of factors beyond crude oil costs, including federal, state, and local taxes.

She explained that changes in crude prices typically take time to work their way through the supply chain, from refiners to distributors and eventually to consumers.

"There is usually a lag of several weeks between a decline in crude oil prices and a corresponding reduction in retail gasoline prices," Young said, adding that refiners play a key role in determining how quickly lower input costs reach motorists.

The latest slide in oil prices reflects growing optimism among traders that immediate supply risks in the Middle East may be easing, although analysts caution that geopolitical tensions in the region continue to pose a significant threat to global energy markets.