Oil prices fell on Wednesday, extending this week’s losses and trading near four-month lows as investors monitored improving crude flows through the Strait of Hormuz following easing tensions between the United States and Iran, as per news reports.
Brent crude futures slipped 37 cents, or 0.5%, to US$76.71 a barrel, while U.S. West Texas Intermediate crude declined 36 cents, or 0.5%, to US$72.85 a barrel. Both benchmarks had already fallen nearly 1% in the previous session, touching their lowest levels since early March.
Oil markets remained under pressure after Washington granted Tehran a 60-day sanctions waiver following initial peace discussions, allowing Iran to continue selling crude oil. At the same time, hostilities in Lebanon showed signs of easing, reducing fears of major supply disruptions in the Middle East.
Analysts noted that expectations of smoother tanker movement through the Strait of Hormuz have weakened the geopolitical risk premium that had supported crude prices in recent weeks.
Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting, stated that hopes of easing U.S.-Iran tensions and a recovery in oil shipments through the strait were weighing on crude prices.
Oman and Iran agreed to continue discussions regarding the future administration of navigation through the Strait of Hormuz, a strategically important route for global oil trade. U.S. Secretary of State Marco Rubio stated that any Iranian attempt to impose transit fees would violate international law.
However, uncertainty surrounding the negotiations continues to keep traders cautious. U.S. President Donald Trump claimed that Iran had agreed to indefinite nuclear inspections, while Tehran denied making such commitments during the talks.
Investors are now closely watching how quickly Middle Eastern producers can fully restore exports and whether additional vessels will resume operations in the region.
Read More: UPI and Aadhaar Banking Dominate MSME Transactions as AI Adoption Rises Among Retailers!
An Iranian military source told local media that a limited number of vessels are being permitted to pass through the strait each day under coordination with Iran’s Revolutionary Guards Navy.
Ship-tracking data showed that three stranded supertankers successfully passed through the Strait of Hormuz on Tuesday. Meanwhile, the United Nations shipping agency confirmed that evacuation plans are underway to assist hundreds of ships and more than 11,000 seafarers stranded in the Gulf following the recent conflict.
Despite the decline in prices, U.S. crude inventory data provided some support to the market. According to data released by the American Petroleum Institute, crude stocks fell by 765,000 barrels during the week ended 19 June.
Market analysts surveyed by Reuters had expected a larger decline of around 4.5 million barrels, indicating that demand conditions remain relatively stable despite geopolitical developments.
Oil prices continue to face pressure as easing geopolitical tensions and improving tanker movement through the Strait of Hormuz reduce immediate supply concerns. However, uncertainty surrounding U.S.-Iran negotiations and the pace of export recovery in the Middle East may keep crude markets volatile in the near term.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 24, 2026, 8:07 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN