Oil prices extend losses as Brent hits pre-conflict low on easing Hormuz concerns

Oil prices fell sharply on Wednesday, with Brent crude dropping to its lowest level since before the US-Iran conflict, as rising tanker traffic through the Strait of Hormuz and progress in peace talks eased supply concerns.

International benchmark Brent crude fell 4.6% to below $74 per barrel, while US benchmark West Texas Intermediate (WTI) dropped below $70 per barrel as investors priced in a faster normalization of Gulf oil flows.

The decline came as more shipowners openly transited the Strait of Hormuz with active satellite signals after safety assurances and improving navigation conditions in the key waterway, through which a large share of global seaborne oil trade passes.

Maritime data provider Kpler said traffic through the Strait of Hormuz improved cautiously on June 23, with 31 verified crossings recorded across commercial and energy-linked vessels, while more empty LNG tankers entered the Persian Gulf to pick up cargoes as Gulf producers seek to restore exports.

US President Donald Trump said there would be no tolls, insurance costs or other charges for tankers passing through the strait, helping lift market confidence over the continuity of energy shipments from the Persian Gulf.

The recovery in flows has also supported a rebound in Gulf exports. The International Energy Agency estimates the United Arab Emirates is exporting oil at nearly 85% of pre-war levels after adapting supply routes and shipping operations.

Oil prices have now retreated by about 40% from their wartime peak, as traders unwind the geopolitical risk premium built into prices during the conflict.

However, signs of tightness in the US market limited deeper losses. The American Petroleum Institute reported that Cushing crude inventories fell by nearly 1 million barrels in the latest week, after earlier draws brought the storage hub closer to minimum operating levels.