WEB DESK: Brent crude prices dropped to $76.30 per barrel, while West Texas Intermediate (WTI) slipped to $72.43 per barrel, as oil markets experienced over a 1% decline on Wednesday, approaching levels not seen in nearly four months. The decline was driven by growing expectations that more oil tankers stranded in the Gulf are likely to resume transit through the Strait of Hormuz.
As of 0350 GMT, Brent futures declined by 78 cents, or 1.0%, while WTI futures fell by the same amount, or 1.1%. Both benchmarks had already declined approximately 1% on Tuesday, reaching their lowest points since early March.
Analysts from ING highlighted that encouraging signals from the Persian Gulf are boosting confidence about increased oil flows through the Strait. Recent days have seen more vessels crossing, although levels are still significantly below pre-conflict figures.
Oil prices have also been pressured this week by the U.S. granting Tehran a 60-day sanctions waiver, which permits Iran to continue selling oil amid ongoing peace negotiations. Additionally, easing tensions in Lebanon have contributed to the downward pressure.
Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting, commented that “hopes for reduced US-Iran tensions and a rebound in oil shipments through the Strait are weighing on prices.” He added that “further progress in nuclear negotiations could see prices return to pre-conflict levels.”
On Tuesday, Oman and Iran agreed to continue discussions about the management of navigation through the Strait. U.S. Secretary of State Marco Rubio emphasized that any Iranian attempt to impose transit fees would breach international law.
However, uncertainties persist regarding the stability of the current diplomatic agreements. While U.S. President Donald Trump claimed Iran had agreed to indefinite nuclear inspections, Tehran insisted it had made no such commitments in recent talks.
Market participants are also monitoring how swiftly Middle Eastern producers can restore their export volumes and whether more ships will begin passing through the region. An Iranian military source told Fars news agency that a limited number of vessels are currently permitted to transit daily, under coordination with Iran’s Revolutionary Guards Navy.
Ship-tracking data indicated that three stranded supertankers successfully crossed the Strait on Tuesday. Additionally, the UN shipping agency announced that a plan is underway to evacuate hundreds of ships and over 11,000 seafarers stranded in the Gulf, following the recent US-Iran ceasefire agreement.
In related market developments, crude oil inventories fell by approximately 765,000 barrels in the week ending June 19, according to data from the American Petroleum Institute. However, analysts polled by Reuters had anticipated a larger decline of about 4.5 million barrels for the same period.
