Strait of Hormuz breaks record with 19 million barrels of oil flowing in one day
Oil falls below $75 for the first time since March as Hormuz traffic begins to recover
The high-level latest talks between the US and Iran have concluded on a positive note, showing the marks of encouraging progress on all fronts.
The highly-anticipated talks followed the signing of a memorandum of understanding that led to the extendable 60-days final peace talks between the conflicting parties and reopening of the strategically important Strait of Hormuz.
In a months-long conflict between Tehran and Washington, the Strait of Hormuz has remained persistently closed, soaring the prices of oil and keeping the global energy markets on edge.
After the reopening of Hormuz, the shipping traffic has been increasing and the supply of global oil has been improving.
In a recent Truth Social post, Trump celebrated record oil flows through Strait of Hormuz after the US-Iran peace deal.
President Trump posted, “19 Millions Barrels of Oil flowed out of the Hormuz Strait yesterday, an all time RECORD. Oil prices are tumbling down, and the World is a much safer place!!!”
The milestone comes days after the US and Iran signed a deal on June 17 to end their war, lifting blockades that had slashed daily flows from 20-21 million barrels to as low as 2-5 million.
The recent high-level talks between Tehran and Washington mediated by Pakistan and Qatar concluded at Burgenstock in Switzerland on Monday. Iran’s top negotiator Mohammad Bagher Ghalibaf also signalled towards “good achievements” in US-Iran talks.
According to Ghalibaf, the Strait of Hormuz would be administered by Iran in any permanent deal with the US.
He added, “everyone should know that the administration of the strait will never return to the way it was before the war.”
“We agreed to establish coordination mechanisms in the Strait of Hormuz, including a hotline and a centre that can be contacted whenever there is any ambiguity or dispute.”
Hormuz strait is a strategically important passageway as around 40 percent of global oil passes through this vital waterway.
