Oil Prices Hit 4-Month Lows as Strait of Hormuz Traffic Resumes

Oil prices dropped to near four-month lows on Wednesday (June 24) as tankers stranded in the Gulf began moving through the Strait of Hormuz. Brent crude slipped 37 cents, or 0.5%, to $76.71 a barrel, while the US benchmark West Texas Intermediate (WTI) fell 36 cents, or 0.5%, to $72.85.

Analysts say the steady normalization of tanker traffic has eased fears of a global supply crisis, driving down market prices. Tomomichi Akuta, a senior economist at Mitsubishi UFJ Research and Consulting, attributed the market's downward trend to easing US-Iran tensions. He noted that if nuclear deal negotiations continue to progress, oil prices could soon return to pre-war levels.

Ship-tracking data revealed that three supertankers successfully passed through the Strait on Tuesday. Following the recent US-Iran ceasefire agreement, the UN shipping agency is actively coordinating the safe evacuation of hundreds of stranded ships and roughly 11,000 sailors. Currently, a limited number of vessels are being allowed to pass each day in coordination with the Iranian Revolutionary Guard Navy, bringing much-needed relief to the global energy market.