Oil prices continued their decline as more tankers openly crossed the Strait of Hormuz, while the United States and Iran signaled progress toward ending the war.
Brent crude fell below $77 a barrel after declining 1.1% in the previous session, while West Texas Intermediate crude was near $73.
Ships are transiting the waterway with their satellite signals on, indicating growing confidence among ship owners. The International Maritime Organization also said it had received safety assurances allowing hundreds of ships to leave the Arabian Gulf.
Washington and Tehran have both indicated early progress in talks to end the war that began in late February, though negotiations are likely to be lengthy, with both sides offering conflicting accounts. Iran and Oman have said they have begun working on an agreement to manage the Strait of Hormuz, including services for ships and related costs, amid continued concerns that Tehran might impose fees.
Oil nears new low
Carl Larry, an oil and gas analyst at Enverus, said: “I think the market was waiting for the last bulls to give up, and we’re approaching a bottom near $75.” He added: “There are a lot of questions ahead: supply compensation, loading wait times, and whether China will return to the buying side.”
The Republican-led Senate voted Tuesday to end the U.S. war with Iran in a rare symbolic rebuke to President Donald Trump. While the resolution is unlikely to force any changes to the administration's strategy, it represents the latest indication that the president lacks domestic support for this effort.
Oil futures have fallen by more than a third from their wartime highs, driven in part by expectations of an imminent increase in crude supplies. The United States has temporarily authorized the purchase of Iranian oil as part of the diplomatic process, aiding sellers' efforts to attract major Asian refiners.
In parallel, Gulf producers, including the UAE, are moving quickly to restore exports. The UAE's oil exports have recovered to nearly 85% of pre-war production levels, according to the International Energy Agency, highlighting the region's ability to ramp up supplies again. Kuwait has withdrawn its force majeure declarations, while Iraq is also increasing production.
However, there are signs of tightening in some markets, including the United States. The American Petroleum Institute reported that crude oil inventories at the main storage hub in Cushing, Oklahoma, fell by another 1 million barrels last week, according to a document seen by Bloomberg.
If official data confirms this later on Wednesday, it would mean that inventories have fallen below the 20 million barrel level widely regarded as the minimum operating level.
