Key Takeaways

• Oil extends losses: Brent fell 2% to $75.52 per barrel, while WTI slipped 1.8% to $71.89 — both settling around four-month lows.
• Third straight session of declines: The losing streak reflects rapidly unwinding supply disruption fears.
• Supertankers exiting the Gulf: Several previously stranded supertankers have successfully left the Gulf carrying crude cargoes — an early sign of normalization.
• LNG vessels resuming: Qatar-linked liquefied natural gas ships have also resumed voyages through the Strait of Hormuz.
• 60-day peace roadmap agreed: U.S. and Iranian negotiators confirmed a framework aimed at reaching a broader settlement within 60 days.
• Sanctions waiver in effect: Washington granted a temporary waiver allowing certain Iranian oil exports to resume through August — raising expectations of additional supply.
• API inventory miss: U.S. crude inventories fell just 765,000 barrels last week — well below analysts’ expectations for a larger draw.
• Cushing stocks drop 1 million barrels: The WTI delivery hub saw a meaningful drawdown.
• Gasoline and distillates build: Gasoline stocks rose 1.2 million barrels; distillates gained 1.4 million barrels.
• EIA data due today: Official inventory figures expected to confirm or challenge the API’s picture.
• Hormuz normalization accelerating: The combination of physical tanker movements and diplomatic progress is rapidly deflating the geopolitical risk premium.

Oil prices extended losses on Wednesday, retreating for a third straight session as signs of a gradual reopening of the Strait of Hormuz and improving U.S.-Iran relations eased fears of a prolonged disruption to Middle East energy supplies.

As of 05:39 ET (09:39 GMT), Brent oil futures expiring in August fell 2% to $75.52 per barrel, while West Texas Intermediate crude futures also slipped 1.8% to $71.89 per barrel. Both benchmarks settled around four-month lows in the previous session.

Hormuz Shipping Activity Steadily Recovering

Market sentiment was shaped by evidence that shipping activity through the Strait of Hormuz is steadily recovering following a months-long conflict that had disrupted one of the world’s most important energy chokepoints.

Reports showed that several previously stranded supertankers have successfully exited the Gulf carrying crude cargoes, while a growing number of Qatar-linked liquefied natural gas vessels have resumed voyages through the waterway.

The movements are being viewed by traders as an early sign that regional energy flows are normalizing.

Iran Sanctions Waiver Raises Supply Expectations

U.S. and Iranian negotiators have agreed to a 60-day roadmap aimed at reaching a broader settlement, while Washington has granted a temporary sanctions waiver allowing certain Iranian oil exports to resume through August.

The developments have raised expectations of additional crude supplies returning to global markets.

API Inventory Data Misses Expectations

Investors also assessed U.S. inventory data from the American Petroleum Institute. U.S. crude inventories declined by just 765,000 barrels in the week ended June 19 — compared with analysts’ expectations for a larger draw.

Crude stocks at the WTI delivery hub in Cushing fell by 1 million barrels. Gasoline and distillate fuel oil stocks increased by 1.2 million barrels and 1.4 million barrels, respectively.

Traders are awaiting official inventory figures from the U.S. Energy Information Administration later on Wednesday for confirmation.