Why are oil prices falling at a time when the Trump administration has announced an economic-day on Iran and is set to impose sweeping new sanctions? Well
the answer lies in the details posted by the US Secretary of Energy which states that nearly 20 million barrels of oil is leaving the region each day. Both WTI Crude and Brent Crude prices have declined over 1 percent (at the time of filing this copy) and Brent Crude prices are trading near 94 dollars per barrel. US Energy Secretary Chris Wright had posted on X and said “On Tuesday, the U.S. military helped ship over 15 million barrels of oil and products out of the Strait of Hormuz — combined with pipelines, the total leaving the region is closer to 20 million barrels. 7-day average of oil leaving the Strait is over 8 million barrels a day. Make no mistake, thanks to the US Navy, oil is flowing through the Strait of Hormuz.” Global oil expert and CEO-Australia, Trading.com Peter McGuire told Times Now Digital, "if we are to believe US Energy Secretary Chris Wright then there’s no shortage of energy products travelling currently through the Strait of Hormuz. From a price perspective one would have to agree as the Brent benchmark hasn’t been able to break $95bbl since 27 July and as commodity traders say, 'show me the price and I’ll tell you what the sentiment is' and if nearly 20 million barrels of product are leaving the region each day then the market looks like prices will start to drop over the next few weeks." US Treasury Secretary Scott Bessent had earlier announced plans for what he described as the "single greatest financial offensive ever marshalled against an adversary." In a post on X, Bessent said US President Donald Trump had dismantled Iran’s military capabilities, destroyed nearly 100 percent of its military factories and "buried its nuclear program". He said the United States was now entering the "endgame" in its confrontation with Iran. Iran's Security Chief Mohsen Rezaei has stated that if Trump’s "economic war" continues, Tehran will halt all oil exports from the Gulf and treat any country’s support for US sanctions as "an act of war."
