Oil falls to its lowest since the eve of the war as some Hormuz ships move

The Treasury Department lifted sanctions on Iran and authorized production, delivery, and sale of Iranian oil for 60 days during talks in Switzerland. United States crude fell 2.7 percent to about 74 dollars a barrel, the first time below that area since early March, after secretary Scott Bessent announced the waiver. Global prices then fell to their lowest since February 27, the day before the war began, with Brent at 73.50 dollars.

The International Maritime Organization announced an evacuation plan for about 500 to 600 ships and 11,000 seafarers stranded in the Persian Gulf. Iran objected, a vessel was attacked near Oman, and secretary-general Arsenio Dominguez said the evacuation would be paused. The Revolutionary Guard Navy rejected temporary routes proposed with Oman.

The Singapore-flagged container ship Ever Lovely was damaged by an unknown projectile off Oman near Dahit in Musandam, with no casualties reported. Oman's foreign minister Badr bin Hamad Al Busaidi said no transit fees would be imposed in future management of the strait. Two Qatari LNG carriers, Bu Samra and Patris, transited after being stranded.

Bangladesh's MV Banglar Joyjatra cleared the strait after four and a half months. India confirmed four fertilizer ships carrying urea, diammonium phosphate, and sulfur had passed. Kpler data showed two crude tankers with 2 million barrels coming from the east, one listing Basra as a destination, and Reuters said weekly crude shipments through the strait were the highest since the war began but still a fraction of pre-war levels.

Secretary of state Marco Rubio said the United States will not accept Iranian tolls on Hormuz traffic. The Federal Reserve's inflation reading rose to a three-year high in May, and the Commerce Department reported a 4.1 percent rise in consumer prices driven by gas, the largest since April 2023. Australia and Canada signed a 2.5 billion Australian dollar deal, about 1.7 billion United States dollars, for over-the-horizon radar, described as Australia's largest defence export.

Mediators Pakistan and Qatar said Iran and the United States had agreed a roadmap for a final deal within 60 days. The oil price, the waiver, and the still-limited ship count were the economic picture. Traffic was moving and still far from normal, which was the point of both the price drop and the seafarer evacuation fight.