Oil Falls on Signs of Strait of Hormuz’s Reopening

Oil futures fell after reports that tankers had begun moving through the Strait of Hormuz again, a sign that one of the world’s most important oil chokepoints may be reopening after weeks of disruption.

Front-month West Texas Intermediate crude fell 0.7% to $76.05 a barrel in early Asian trading, according to the Wall Street Journal. The report said the move followed signs that shipping through the strait was resuming after an interim U.S.-Iran peace agreement.

Tankers start moving again

The first reports of renewed traffic came on June 18, when AP said stranded ships had begun transiting the strait again. By early June 19, additional reports said tankers were again crossing the waterway, including vessels linked to Saudi Arabia and other Gulf shippers.

The New York Post reported that at least 12 tankers crossed within hours of the deal, including three Saudi-flagged supertankers identified as Awtad, Shaden and Jaham. It said the ships carried a combined six million barrels of crude oil.

A gradual recovery looks more likely

Even with traffic resuming, market watchers say a return to normal may take time. MarketWatch reported that traffic could recover only gradually because roughly 119 oil tankers were still trapped in the Persian Gulf and because mine risk and navigational hazards remained.

The outlet also said war-risk insurance on oil tankers had surged from a prewar 0.02% to as high as 2%, leaving shipowners and cargo interests cautious about moving too quickly.

That makes the reopening more of a phased normalization than an immediate reset. Some ships may be willing to sail, but insurers, operators and charterers still have to assess security conditions before traffic can return to prewar levels.

Why the strait matters

The Strait of Hormuz is one of the most sensitive routes in global energy markets, handling about 20% of global oil shipments. Any sign of disruption or reopening can move crude prices quickly, and a sustained return to regular traffic could ease some supply fears and inflation pressure.

The Guardian reported that Iran plans to begin charging maritime fees for ships passing through the strait in two months after a memorandum of understanding with the U.S., and said the blockade had been lifted. Those fee details have not been independently confirmed in this reporting set.

What to watch next

The key question now is whether tanker movements continue steadily instead of spiking for a single day. Traders, shippers and insurers will be watching for:

• more AIS and vessel-tracking confirmation that traffic is sustained
• any official Iranian or U.S. statement on transit rules or tolls
• changes in war-risk insurance pricing and routing guidance
• incidents, inspections or enforcement actions that could interrupt the flow

For now, the market is treating the reopening as a meaningful step toward normalization, but not yet a return to fully settled conditions.