Oil prices have dropped for two straight days following previous surges, having hit four-year highs on Monday before logging the biggest single-day percentage drop since 2022.
Oil prices plunged on Tuesday when Secretary of Energy Chris Wright claimed in an X post that the U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz. Brent Crude dropped to around $81 per barrel, according to MarketWatch. However, White House Press Secretary Karoline Leavitt corrected that claim in her Tuesday afternoon press briefing, which sent oil prices back up, with Brent Crude closing around $91 per barrel.
“I can confirm that the U.S. Navy has not escorted a tanker or a vessel at this time, though, of course, that’s an option that the president has said he will absolutely utilize if and when necessary at the appropriate time,” Leavitt said.
Using the U.S. Navy to escort vessels through the Strait of Hormuz, through which about 20% of the world’s oil travels, is just one of the options the Trump administration has announced that would bring down prices.
The administration ordered the U.S. International Development Finance Corporation to offer political risk insurance to tankers operating in the Gulf. Insurance policies covering a vessel traveling through the strait have reportedly jumped by as much as 37.5%, while others were canceled altogether. In addition, the Treasury Department lifted oil sanctions — most notably on Friday, when Treasury Secretary Scott Bessent issued a temporary 30-day lift allowing India to buy Russian oil.
Senate Democrats criticized the decision to lift oil sanctions, writing in a statement, “Now is not the time to clear the way for sales for Russian oil majors and Russian-owned and shadow fleet vessels.”
Bessent argued that the lifted sanctions were narrow in scope and would not provide a substantial financial benefit to the Russian government. Russia, the United States, and Saudi Arabia lead the world in oil production.
[#item_full_content]
[[{“value”:”
Oil prices have dropped for two straight days following previous surges, having hit four-year highs on Monday before logging the biggest single-day percentage drop since 2022.
Oil prices plunged on Tuesday when Secretary of Energy Chris Wright claimed in an X post that the U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz. Brent Crude dropped to around $81 per barrel, according to MarketWatch. However, White House Press Secretary Karoline Leavitt corrected that claim in her Tuesday afternoon press briefing, which sent oil prices back up, with Brent Crude closing around $91 per barrel.
“I can confirm that the U.S. Navy has not escorted a tanker or a vessel at this time, though, of course, that’s an option that the president has said he will absolutely utilize if and when necessary at the appropriate time,” Leavitt said.
Using the U.S. Navy to escort vessels through the Strait of Hormuz, through which about 20% of the world’s oil travels, is just one of the options the Trump administration has announced that would bring down prices.
The administration ordered the U.S. International Development Finance Corporation to offer political risk insurance to tankers operating in the Gulf. Insurance policies covering a vessel traveling through the strait have reportedly jumped by as much as 37.5%, while others were canceled altogether. In addition, the Treasury Department lifted oil sanctions — most notably on Friday, when Treasury Secretary Scott Bessent issued a temporary 30-day lift allowing India to buy Russian oil.
Senate Democrats criticized the decision to lift oil sanctions, writing in a statement, “Now is not the time to clear the way for sales for Russian oil majors and Russian-owned and shadow fleet vessels.”
Bessent argued that the lifted sanctions were narrow in scope and would not provide a substantial financial benefit to the Russian government. Russia, the United States, and Saudi Arabia lead the world in oil production.
“}]]
