Oil prices edged lower Monday in subdued trading during the Easter holiday, as reports of limited tanker movement through the strategically vital Strait of Hormuz offered cautious optimism to investors.
Benchmark Brent crude fell 0.8% to $108.20 a barrel by midmorning trading, while U.S. West Texas Intermediate declined 1.4% to $110.01.
The price dip followed reports that some oil tankers had successfully passed through the strait, which Iran has largely shut since late February amid escalating tensions following U.S.-Israeli strikes.
“There is definitely some sort of volumes being shipped through the strait — by far not at all normalizing the commercial ship traffic — but it’s definitely a step in the right direction,” SEB analyst Ole R. Hvalbye told AFP.
Turkey’s transport minister said a third Turkish-owned vessel had crossed the waterway. The tanker, Ocean Thunder, carrying crude oil from Iraq to Malaysia, passed safely on Sunday after departing from Basra, according to shipping data.
Two other vessels were also reported to have exited the strait over the weekend. Japanese shipping company Mitsui O.S.K. Lines said an Indian-flagged liquefied petroleum gas tanker operated by one of its subsidiaries had also made the transit.
Despite the developments, tensions remain high. Iran’s Revolutionary Guard Corps said it is finalizing new operational measures for the strait, warning that conditions would not return to previous norms, particularly for U.S. and Israeli-linked shipping.
The Strait of Hormuz is a critical global chokepoint for oil shipments, and disruptions there have contributed to price volatility since the conflict escalated, with crude prices rising sharply from about $60 per barrel before the crisis.
