Oil prices extended losses amid growing expectations that crude flows through the Strait of Hormuz are returning to normal.
International benchmark Brent crude traded at $76.09 per barrel at 9.41 a.m. local time (0641 GMT), down around 0.91% from the previous close of $76.8.
US benchmark West Texas Intermediate (WTI) fell 0.94% to $72.52 per barrel, compared with $73.21 in the previous session.
Oman said it is coordinating with the International Maritime Organization (IMO) on the possibility of establishing a temporary maritime corridor open to all vessels, while confirming that ship transits through the strait continue without fees under international maritime law.
The announcement came as Oman said discussions were ongoing between the parties on a mechanism for operating the Strait of Hormuz following recent diplomatic engagements between the US and Iran.
According to data from analytics firm Kpler and MarineTraffic, tanker traffic through the strait has gradually recovered following a 14-point agreement between the US and Iran that included the reopening of the waterway.
A total of 172 vessels transited the strait between June 18 and June 22, bringing the daily average to 34 vessels. Traffic has thus recovered to roughly 25% of pre-war levels.
Another factor weighing on prices was US President Donald Trump's statement that Iran had agreed to accept extensive oversight of its nuclear program.
In a social media post, Trump said Iran had agreed to "the highest level of nuclear inspections, fully and completely," adding that the move would contribute to progress in negotiations.
In a separate post, Trump also claimed that a record 19 million barrels of oil passed through the Strait of Hormuz in a single day, adding that falling oil prices reflected improving global stability.
However, Trump's warning that talks could collapse and a maritime blockade could be reinstated if Iran fails to meet its commitments kept supply concerns alive, limited further declines in prices.
Meanwhile, US commercial crude oil inventories fell by 765,000 barrels last week, according to the American Petroleum Institute (API), signaling strong demand in the world's largest oil consumer and providing some support to prices.
Expectations that the US Federal Reserve could cut interest rates twice before the end of the year also helped limit losses, as lower borrowing costs are expected to support economic activity and fuel demand.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
