Oil Market Update – 24 June 2026

Reuters reported that Asian trade on Wednesday saw oil prices extend losses for a third straight session as evidence of a gradual reopening of the Strait of Hormuz and improving U.S.-Iran relations reduced fears of a prolonged disruption to Middle‑East energy supplies.

Brent Oil Futures expiring in August declined 0.4% to $76.76 per barrel, while West Texas Intermediate (WTI) futures also slipped 0.4% to $72.91 per barrel. Both benchmarks had settled around four‑month lows in the previous session.

Strait of Hormuz Traffic Recovery

Shipping activity through the Strait of Hormuz is steadily recovering after a months‑long conflict that had collapsed traffic. Several previously stranded super‑tankers have successfully exited the Gulf carrying crude cargoes, and a growing number of Qatar‑linked liquefied natural gas vessels have resumed voyages through the waterway. Traders view these movements as an early sign that regional energy flows are normalising.

Diplomatic Progress and Sanctions Waiver

U.S. and Iranian negotiators agreed to a 60‑day roadmap aimed at reaching a broader settlement. Concurrently, Washington granted a temporary sanctions waiver allowing certain Iranian oil exports to resume through August, raising expectations of additional crude supplies returning to global markets.

Market Context

The Strait of Hormuz handles a significant share of global oil and LNG trade. Although analysts caution that mine‑clearing operations, damaged infrastructure, and security risks continue to limit full‑scale operations, tanker movements have increased noticeably over the past week.

U.S. Inventory Data

The American Petroleum Institute (API) reported that U.S. crude inventories declined by 765,000 barrels in the week ended 19 June, a draw smaller than analysts’ expectations for a larger decline. Traders are awaiting the official inventory figures from the U.S. Energy Information Administration (EIA) later on Wednesday for confirmation.

Author: Ayushman Ojha | Published: 24‑06‑2026, 07:04 am | Source: Reuters

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