Oil prices dropped 5% to 8% on Tuesday, the second day of the naval blockade of the Persian Gulf ordered by President Donald Trump.
Investors felt more optimistic that the blockade by the U.S. forced Iran to return to peace talks as the U.S. and Israel put a hold on their military attacks of Iran.
Global benchmark Brent crude fell $4.57 or 4.6% to settle at $94.79 a barrel.
West Texas Intermediate in the U.S. fell even more, closing down $7.80 or 7.87% a barrel to $91.20 on the New York Mercantile Exchange.
Their decline a day after rising on Monday when the Naval blockade went into effect.
Prior to President Trump’s own blockade, the attacks on Iran and other Middle East countries and their energy infrastructures cost 10.1 million barrels of oil a day during the month of March. Combined with Iran’s closure of the Strait of Hormuz, it created the largest oil supply disruption in history.
Natural gas prices finished down again, losing $0.028 or 1.07% closing at $2.599 MMBtu.
Tuesday was a day of setbacks for 15 of the 20 Oklahoma energy stocks we monitor daily. They experienced losses and four firms had declines of 4% or more—Coterra Energy, Devon Energy, Helmerich & Payne and SandRidge Energy. On the plus side, Mammoth Energy Services gained nearly 6%.