- Oil prices fell for a third session as Strait of Hormuz shipments recovered steadily
- Brent crude traded near $71 a barrel, with WTI around $68 amid easing supply concerns
- US official reported oil flows through Hormuz exceeded 10 million barrels per day
Oil prices fell for a third straight session on Thursday as crude shipments through the Strait of Hormuz continued to recover and investors remained optimistic that indirect negotiations between the US and Iran could reduce the risk of further supply disruptions.
Brent crude for September delivery traded near $71 a barrel, extending losses after falling more than 3% over the previous two sessions. West Texas Intermediate (WTI) hovered around $68 a barrel.
Market sentiment improved after a US official said oil flows through the Strait of Hormuz had climbed to more than 10 million barrels a day, signalling that global energy supplies are steadily returning. The recovery has eased concerns that Iran could significantly disrupt shipping through the strategic waterway, which carries roughly a fifth of the world's seaborne crude.
US President Donald Trump said negotiations with Iran were making progress, while Qatar indicated that the next round of indirect talks would be scheduled as soon as possible after Iran concludes funeral ceremonies for its former Supreme Leader, Ali Khamenei, who was killed during the conflict. The ceremonies are expected to begin on July 4.
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Crude has now erased the war premium built into prices during the conflict. The rebound in tanker traffic through Hormuz and workarounds have helped the United Arab Emirates restore exports to pre-conflict levels. Key US crude grades have slipped to discounts amid softer demand for American barrels, while Morgan Stanley has warned that improving supply and subdued Chinese demand could leave the market well supplied in the coming months.
Despite the easing tensions, Iran has reiterated its intention to maintain greater oversight of shipping through the Strait of Hormuz, while unresolved issues surrounding its nuclear programme and regional security continue to complicate negotiations during the current 60-day ceasefire period.
US crude inventories have continued to tighten. Commercial crude stockpiles, excluding the Strategic Petroleum Reserve, have declined for 12 consecutive weeks to their lowest level since March 2025.
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