Oil Extends Decline as Strait of Hormuz Flows Improve

Oil prices fell for a third straight session as shipping through the Strait of Hormuz continued to recover and signs emerged of progress in indirect negotiations between the United States and Iran.

Oil prices declined as crude shipments through the Strait of Hormuz recovered despite ongoing geopolitical tensions. (Photo: GuavaTrain, Wikimedia Commons)

Bloomberg News reported that West Texas Intermediate (WTI) traded near $68 per barrel, while Brent crude settled below $72 per barrel on Wednesday.

According to a US official, oil shipments through the Strait of Hormuz have recovered to more than 10 million barrels per day. President Donald Trump also cited progress in negotiations between Washington and Tehran.

Qatar said the next round of talks would be scheduled following funeral ceremonies for Iran's former Supreme Leader Ali Khamenei, which Iranian state media said would begin on July 4.

Oil has continued to decline following its biggest quarterly loss since 2020 as shipping through the strategic waterway resumed despite recent military tensions.

Although overall supply remains constrained, exports from the United Arab Emirates have reportedly returned to pre-conflict levels through a combination of tanker movements and pipeline shipments.