Oil Falls Third Day as Strait of Hormuz Flows Surge, US-Iran Talks Advance
By Aboki Forex —
Oil prices dropped for a third straight day. Flows through the Strait of Hormuz surged and indirect talks between the United States and Iran showed signs of progress.
West Texas Intermediate traded near $68 a barrel. It had already fallen 3% over the previous two sessions. Brent crude settled below $72 on Wednesday.
Oil supply through the critical waterway has hit more than 10 million barrels a day. A US official said this underscores that Tehran now has limited ability to halt shipping through the strait. President Donald Trump hailed progress in the negotiations.
Qatar said the next meeting will be scheduled as soon as possible. This follows funeral processions for Iran's former Supreme Leader Ali Khamenei, who was killed in an air strike at the start of the conflict. Iranian state-run media said ceremonies are expected to begin July 4 and continue for days.
Oil has extended losses after its worst quarter since 2020. Flows through Hormuz, which connects Persian Gulf producers to global buyers, continued despite weekend tensions that saw the parties exchange strikes.
Total supply is still crimped. But the United Arab Emirates' exports have reached pre-war levels. The country sneaked tankers through the critical waterway and turned to pipeline flows.