US crude oil falls below $70 despite Iranian attack on cargo ship

US crude oil prices fell below $70 a barrel on Friday as optimism about tanker traffic in the Strait of Hormuz persisted despite an Iranian attack on a cargo ship causing a temporary halt in evacuations.

West Texas Intermediate crude oil dropped 3.4% to $69.46 a barrel, while Brent crude oil, the global benchmark, declined 3.1% to $72.18 a barrel.

The national average gasoline price stood at $3.90 a gallon on Friday, marking a 13% decrease over the past month and a significant drop from the highs of $4.56 a gallon earlier this year, according to AAA.

Iran reportedly attacked a Singaporean cargo ship passing through the strait on Thursday, following a warning that violators not using the sanctioned route would face consequences.

The International Maritime Organization announced a temporary pause in the evacuation of ships through the strait after the attack, emphasizing that the attacked cargo vessel did not fall under the IMO’s evacuation framework.

IMO Secretary-General Arsenio Dominguez stated, “Following the launch of the IMO’s evacuation plan, I have decided to temporarily pause its implementation in order to reconfirm that the necessary safety guarantees continue to be in place.”

Recently, the US and Iran signed a memorandum of understanding to reopen the strait, giving them 60 days to reach a final agreement.

Despite tensions, some progress was made with the US and Oman agreeing on a new UN-backed route along the Omani coast for ships stuck in the strait, although Iran disputed the route announcement.

Traders cautiously welcomed the resumption of tanker traffic through the strait, which typically handles 20% of the world’s oil supplies, after months of blockade causing severe energy supply disruptions.

US crude oil prices saw an 8% drop this week as vessels began to leave the Persian Gulf, but analysts cautioned that it may take several months for gasoline prices to dip below $3.

As the US and Iran work towards an official peace agreement, tensions persist, especially regarding the unfreezing of Iranian assets.

President Trump and Vice President JD Vance have suggested that unfrozen Iranian assets could benefit American farmers by exclusively purchasing agricultural and medical supplies from the US.

The speaker of Iran’s parliament refuted these claims on Thursday.