Oil prices fell near $70 a barrel as traders cheered an evacuation plan for vessels trapped in the Strait of Hormuz – hopeful that global energy supplies will normalize quickly if the US and Iran can reach a lasting peace agreement.

Brent crude oil futures sank 3.1% to $73.13 a barrel – their lowest level since the day before the Iran war broke out with US and Israeli strikes on Feb. 28.

West Texas Intermediate crude also slid 3.8% to $70.43 a barrel. The benchmark briefly dipped below the $70 mark earlier in the day.

The oil benchmarks breathed a sigh of relief after the International Maritime Organization announced Tuesday that Iran and Oman will start coordinating a large-scale evacuation of more than 11,000 stranded seafarers through the Strait of Hormuz.

The Dow Jones Industrial Average rose 494 points, or 1%, by about 12:25 p.m. ET, while the S&P 500 and Nasdaq jumped 0.6% and 0.7%, respectively.

Gasoline prices have also been easing, falling for the sixth week in a row and hitting $3.93 a gallon Wednesday – far below their peak of $4.56 a gallon, according to AAA.

But President Trump on Wednesday said they are not falling fast enough – accusing oil giants of price gouging.

“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged,’” the president wrote in a Truth Social post.

“I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!”

US gasoline prices are down 13% over the past month, or 59 cents, according to AAA. 

Over the same period, Brent crude has fallen more than 15%, or by roughly $13, while US crude is down 12%, or about $9. 

Experts say there is a roughly two-week lag between oil benchmarks and gasoline prices, since the gasoline in pumps was purchased at higher prices – so consumers will not see an immediate cooldown effect.

There are also many other factors at play that could delay the decline in gasoline prices.

It will likely take up to six months for tanker traffic flows to fully normalize, and repairs to damaged Middle Eastern energy facilities could take anywhere from six months to two years, according to Joe Adamski, managing director of ProcureAbility, a supply chain consultancy.

Vessel operators need to unload ships that have been stuck in the strait for months and re-load them, which takes time, and there are also safety concerns after months of reports that Iran had been laying mines in the waterway.

In the meantime, traders are optimistic as some vessels have already exited the Strait of Hormuz in the days after the US and Iran signed a memorandum of understanding, which gives the two nations 60 days to reach a final agreement.

Trump said Wednesday that Iran had informed him there will be no tolls, insurance costs or charges of any kind for ships looking to traverse the strait, following reports that Iranian officials were considering imposing new levies on vessels.