Oil prices fell about 4% Wednesday as tankers continued to transit the Strait of Hormuz, raising hopes that the worst of the Middle East supply disruption is over.
West Texas Intermediate futures closed at $70.34 per barrel after hitting a session low of $69.63 per barrel. It was the first time the contract has fallen below $70 since March 2.
Brent crude futures, the international benchmark, fell 4.3% to settle at $73.74 per barrel, notching its lowest level since before the U.S. and Israel launched the war against Iran on Feb. 28.
U.S. President Donald Trump on Wednesday criticized oil companies for not lowering gasoline prices in line with the recent decline in crude prices.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock!,” Trump wrote in a Truth Social post.
“In other words, customers are being “gouged.” I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!,” he added.
CNBC has contacted the U.S. Department of Justice for comment and is awaiting a response.
Investors were also encouraged by signs that maritime traffic through the Strait of Hormuz could begin returning to normal.
More than 11,000 seafarers stranded in the Persian Gulf will begin exiting through the Strait of Hormuz after safety guarantees were secured, according to the International Maritime Organization. (CNBC)