- Donald Trump declares the Strait of Hormuz “100% shut down,” but markets rally as oil prices drop on diplomatic signals.
- Iran sends a fresh proposal via Pakistan, triggering a sharp pullback in crude prices.
- Chevron CEO warns oil markets remain fragile, with supply risks persisting despite easing prices.
President Donald Trump has just announced that the Strait of Hormuz is “100% shut down.” Despite the statement, markets remain positive, with the total crypto market cap rising 2.1% over the last 24 hours to $2.68 trillion.
Iran has already sent a fresh proposal to mediators, and oil prices have fallen fast. Yet the pressure is far from over.
Iranian state media confirmed Tehran handed its latest proposal to the U.S. through Pakistani channels. The move came on Friday and aimed to restart talks.
Oil reacted instantly, with Brent crude sliding near $110 a barrel while West Texas Intermediate settled around $103. Both contracts trimmed their weekly gains in a single session. Markets have priced in some hope of de-escalation, but the physical supply picture remains tight.
Nevertheless, oil has remained under pressure since the disruption in the Strait of Hormuz began. Traders watched Brent spike above $120 and WTI push toward $110 before the latest dip. The price drop following the news of the proposal shows how sensitive the market has become to any hint of diplomacy.
Still, the big picture has not changed. Flows through the strait have collapsed. Until tankers move freely again, upside risks have stayed real.
Chevron CEO Drops Reality Check on Market Risks
Chevron CEO Mike Wirth said oil markets will remain exposed to further upside pressure until flows through the Strait resume. He has noted it could take one to two months for normal operations to restart, even after any agreement.
Trump said talks with Iran are ongoing, but “they’re not getting there.” His options remained simple: “Either blast them away or make a deal.” The president’s no-nonsense tone has reminded everyone that the standoff has high stakes.
Until the strait flows resume, oil has stayed in a pressure cooker. Markets have priced in the headlines, but the barrels have not started moving yet. The next few days will decide if the proposal leads anywhere or if the rhetoric turns sharper. For now, oil is down but remains primed for more volatility.
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