By Boluwatife Oshadiya | June 25, 2026
Key Points
- Brent crude fell to $76.09 per barrel while WTI declined to $72.52 amid easing supply concerns
- Tanker traffic through the Strait of Hormuz continues to recover following diplomatic progress between the US and Iran
- Falling US crude inventories and expectations of Federal Reserve rate cuts helped limit deeper price declines
Main Story
Global oil prices extended losses on Wednesday as traders responded to signs that crude shipments through the Strait of Hormuz are gradually returning to normal, easing concerns over potential supply disruptions in one of the world’s most critical energy corridors.
Brent crude futures fell 0.91% to $76.09 per barrel, while US benchmark West Texas Intermediate (WTI) dropped 0.94% to $72.52 per barrel. The decline follows renewed optimism over maritime operations in the Strait of Hormuz, a route through which nearly one-fifth of global oil consumption passes daily.
Oman confirmed it is working with the International Maritime Organisation (IMO) on the possibility of establishing a temporary maritime corridor accessible to all vessels. Authorities also reiterated that vessel transits through the strait remain free of charge under international maritime law.
Market sentiment improved further after data from shipping analytics firms Kpler and MarineTraffic showed tanker movements through the waterway recovering steadily following a recent US-Iran agreement that included measures aimed at restoring safe navigation in the region.
Between June 18 and June 22, approximately 172 vessels transited the strait, averaging 34 vessels daily. While still below historical norms, the figures indicate a significant improvement from the disruptions recorded during the recent geopolitical tensions.
Additional pressure on oil prices came after US President Donald Trump announced that Iran had agreed to extensive oversight of its nuclear programme as part of ongoing negotiations.
“Iran has agreed to the highest level of nuclear inspections, fully and completely,” Trump said in a social media post, adding that the arrangement would support broader diplomatic progress.
The market, however, remained cautious after Trump warned that negotiations could collapse if Iran fails to meet agreed commitments, potentially leading to renewed maritime restrictions.
Meanwhile, the American Petroleum Institute reported that US crude inventories declined by 765,000 barrels last week, suggesting resilient demand from the world’s largest oil consumer.
What’s Being Said
“Iran has agreed to the highest level of nuclear inspections, fully and completely,” said Donald Trump, President of the United States.
Energy analysts noted that the recovery in Strait of Hormuz traffic has reduced immediate supply concerns, though geopolitical risks in the Middle East continue to provide underlying support for crude prices.
What’s Next
- Investors will monitor official US government inventory data from the Energy Information Administration (EIA) for confirmation of stockpile declines
- Markets are expected to track progress in US-Iran negotiations and any developments regarding maritime security arrangements in the Gulf
- Attention remains focused on the US Federal Reserve amid growing expectations of interest rate cuts later this year
The Bottom Line: The reopening of critical shipping routes in the Strait of Hormuz has eased fears of a major supply shock, but lingering geopolitical uncertainty means oil markets remain vulnerable to sudden volatility.
