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US Oil Update: Crude Slumps to 3-Months Low; Trump Claims Again Strait Will be Fully Open by Friday

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Global oil benchmarks plummeted on Tuesday after US President Donald Trump reportedly stated that the Strait of Hormuz will fully reopen by Friday.

Front-month West Texas Intermediate crude futures fell over 4% to $77.46 per barrel, while Brent futures declined 3.4% to $80.31/bbl.

According to Al Jazeera, Trump told reporters on the sidelines of G7 meeting that the Strait of Hormuz will be "completely open by Friday."

Trump also pushed back against potential skepticism regarding the deal's fine print, promising absolute transparency.

"I'll not only release it, I'll probably have a press conference and read it... word by word so that the press covers it accurately," Trump reportedly said regarding the MoU text.

However, market analysts warn that the path to normalcy remains murky.

The physical recovery of regional oil supplies faces significant friction and could take months to materialize.

Under the agreement, the US is removing its naval blockade while Iran reopens the strategic Strait of Hormuz to commercial shipping under joint Iranian and Omani oversight.

Yet, shipping firms remain hesitant. TPH Energy noted that carriers are still demanding formal assurances that underwater mines no longer threaten the vital waterway.

With the geopolitical premium rapidly evaporating, the oil market is now pivoting its attention to the upcoming US crude inventory data to assess the immediate global supply and demand picture.

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