Energy Secretary Sees More Oil Flowing Through Strait of Hormuz as Markets Respond to Signs of Progress

Energy Secretary Chris Wright expressed optimism Tuesday that oil shipments moving through the Strait of Hormuz will continue increasing as the United States and Iran work toward ending a conflict that has stretched beyond 100 days.
Speaking during an event hosted by the Atlantic Council, Wright said activity through the strategically important waterway had already begun to improve and suggested the trend would continue in the coming weeks.
The Strait of Hormuz remains one of the world's most critical energy transit routes, serving as a major passageway for oil shipments. Any disruption to traffic through the narrow corridor can have significant effects on global energy markets and fuel prices.
According to Wright, however, the outlook appears to be improving.
Traffic through the strait is “rising very meaningfully,” he said, adding that the amount of oil being exported through the route will “continue to rise.”
His remarks came as energy markets responded positively to signs that more oil is reaching global markets. Oil prices moved lower Tuesday as investors reacted to growing optimism about shipping activity through the strait and the possibility of greater stability in the region.
U.S. benchmark West Texas Intermediate crude traded at roughly $88 per barrel Tuesday afternoon. That represented a notable decline from Monday, when prices had climbed to nearly $95 per barrel.
International benchmark Brent crude also moved lower. After approaching $98 per barrel the previous day, Brent traded near $92 per barrel Tuesday afternoon.
President Donald Trump echoed a similar assessment Monday night while speaking with reporters.
“A lot of oil’s coming out of the Hormuz Strait,” Trump said. “A lot of it is coming out and as you notice the price is not very high, relatively speaking.”
Despite those encouraging comments, some data suggested shipping volumes remain below normal levels.
An analysis from MarineTraffic reported that traffic through the strait remained at “historic lows” as of Monday, though the firm also noted that five confirmed crossings had taken place.
The mixed signals highlight the uncertainty that still surrounds the region after more than three months of conflict. While officials are pointing to signs of improvement, shipping activity has not yet fully returned to previous levels.
Lower oil prices could provide relief to consumers if the trend continues.
Patrick De Haan, head of petroleum analysis for GasBuddy, wrote on social media that the latest decline in crude oil prices has improved the chances that the national average price of gasoline could fall below $4 per gallon before the Fourth of July holiday.
As of Tuesday, the national average price stood at approximately $4.16 per gallon.
However, market optimism faced a new test later in the day.
Oil prices ticked higher Tuesday afternoon after Trump stated that Iran had shot down a U.S. helicopter and declared that the United States would need to respond. The comments underscored how quickly developments tied to the conflict can affect energy markets and investor sentiment.
During his appearance at the Atlantic Council, Wright also discussed growing interest in Venezuela’s energy sector following the U.S. incursion there.
According to the energy secretary, companies already operating in Venezuela have expanded their investments and increased production, while new firms are also exploring opportunities.
“Many people are looking that are new,” Wright said. “Incumbents that were there already have grown their investments in Venezuela and are growing their production quite rapidly.”
The developments illustrate how closely energy markets remain tied to international conflicts, where disruptions can quickly affect fuel prices, investment decisions, and economic conditions far beyond the regions directly involved.