Oil drops below $70 for first time since Iran war began

Oil Prices Drop to Pre-War Lows as U.S.-Iran Deal Progress Buoys Markets

Oil prices fell sharply on Wednesday, dropping below $70 per barrel for the first time since before the U.S.-Iran conflict began in late February, as renewed optimism over a permanent peace agreement and the reopening of the Strait of Hormuz sent crude tumbling. The decline weighed heavily on Canada’s S&P/TSX Composite Index, which fell nearly 150 points, while U.S. stock markets rallied on eased inflation concerns.

Oil Slides as Ships Transit Strait of Hormuz

The August crude oil contract fell $3.46 to $69.75 per barrel as peace talks between the U.S. and Iran made further progress and more ships passed through the Strait of Hormuz. Brent crude futures dropped roughly 3% to around $73 per barrel, their lowest point since the day before the conflict escalated following Israeli strikes on February 28.nypost

The International Maritime Organization revealed on Tuesday that Iran and Oman will begin a comprehensive evacuation of over 11,000 stranded sailors in the Strait of Hormuz, a development that further boosted confidence in normalizing global oil supply. The U.S. and Iran signed a memorandum of understanding last week granting both sides 60 days to finalize a permanent agreement, with Iran permitted to sell crude oil globally under a sanctions waiver.coincentral

Canadian Markets Hit by Energy Losses

The S&P/TSX composite was down 148.11 points at 34,779.27 in late-morning trading on Wednesday, dragged lower by losses in the energy and base metals sectors. Meanwhile, U.S. markets moved in the opposite direction — the Dow Jones Industrial Average climbed more than 500 points, the S&P 500 rose 55 points, and the Nasdaq Composite gained over 200 points.citynews

The divergence reflected Wall Street’s relief that falling energy costs could ease persistent inflation pressures, while Canada’s resource-heavy index bore the brunt of commodity declines. The Canadian dollar also weakened, trading at 70.24 cents U.S., down from 70.42 cents the prior day.citynews

Gasoline Prices Continue Retreat

The oil decline has translated into relief at the pump for American consumers. According to AAA, the national average price of gasoline fell to $3.92 per gallon on Wednesday, down 58 cents — or 13% — over the past month. President Trump, in a late-night post on Truth Social, directed the Department of Justice to investigate oil companies he accused of “gouging” consumers by not lowering pump prices fast enough to match falling crude costs.abcnews

The head of the U.N.’s International Atomic Energy Agency said Wednesday that inspections of Iran’s nuclear facilities would resume as part of the interim deal, though he indicated there was no immediate urgency on timing.cbsnews