Oil prices plunge to four-month lows as Strait of Hormuz shipping resumes
Business24 June, 01:30 PM
Brent crude futures fell by 78 cents, or 1.0%, to $76.30 a barrel. U.S. West Texas Intermediate (WTI) crude dropped by 78 cents, or 1.1%, to $72.43 a barrel.
Both benchmarks lost about 1%, hitting their lowest levels since early March.
"Positive signals from the Persian Gulf fuel optimism regarding the resumption of oil flows through the Strait of Hormuz," an ING Group statement wrote.
"The number of vessel crossings has increased in recent days, although it remains significantly below pre-war levels."
The weekly decline in oil prices was also driven by Washington's decision to grant Tehran a 60-day sanctions waiver following initial peace talks, allowing Iran to sell crude. Easing hostilities in Lebanon further reinforced the drop in commodity costs.
"Crude oil prices declined due to hopes for easing U.S.-Iran tensions and the resumption of oil supplies through the Strait of Hormuz. Further progress in nuclear talks could return prices to pre-war levels," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
Investors are also watching how quickly Middle Eastern producers can resume exports and whether new vessels will appear in the region.
Vessel tracking data showed that three supertankers stranded in the Persian Gulf passed through the strait on June 23. UN Maritime Agency stated that following the ceasefire agreement between the U.S. and Iran, the development of an evacuation plan had begun to allow hundreds of ships carrying 11,000 sailors stranded in the Persian Gulf to safely pass through the Strait of Hormuz.
On June 18, 2026, U.S. and Iranian leaders Donald Trump and Masoud Pezeshkian signed a memorandum of understanding aimed at ending the conflict in the Middle East. Each did so separately, with Trump signing the document in France.
On that same day, Trump's agreement with Iran shifted oil prices.
On June 19, 2026, oil prices dropped amid improved prospects for increased supplies after oil tankers began passing through the Strait of Hormuz, which reopened following the peace deal between the U.S. and Iran.
On June 22, 2026, Brent crude prices trended downwards following the conclusion of US-Iran negotiations in Switzerland.
On June 23, oil quotes continued to decline.