Iran threatens to close Strait of Hormuz again while U.S. reports more tanker traffic and ongoing talks

U.S. benchmark West Texas Intermediate crude traded at about $75 per barrel on Monday, down slightly from its price late last week. U.S. Central Command said commercial ship travel through the Strait of Hormuz increased on Saturday and that safe passage remained intact.

Over the weekend the Iranian military said it would close the strait in response to Israeli strikes in Lebanon. Iran and the U.S. met in Switzerland for a first round of talks aimed at making a temporary cease-fire permanent.

A memorandum of understanding announced last week stated that Iran will make arrangements for the safe passage of commercial vessels with no charge for 60 days through the strait and will conduct dialogue with neighboring Oman to define future administration and maritime services.

Since the start of the war earlier this year, Iran has effectively closed the Strait of Hormuz, a key oil shipping lane off its coast through which about 20 percent of the world’s oil typically travels. On Saturday the 20th, Vesseltracker counted around 50 vessels entering the strait; the number fell by roughly half the following day.

Energy Secretary Chris Wright said Sunday that the flow of oil through the Strait of Hormuz is returning to normal. Patrick De Haan, head of petroleum analysis at GasBuddy, said on Monday that U.S. and Iranian incentives align toward making a deal.

“Americans and their affinity for cheap energy is kind of a driving power right now,” De Haan said. , the national average gas price reached as high as $4. On Monday the average stood at about $3.93 per gallon, according to AAA.