Oil markets are trending downward as progress in U.S.-Iran peace negotiations improves supply chain outlooks. On Thursday, June 25, 2026, Brent crude fell to $72 per barrel — marking its fourth consecutive session of losses and erasing all gains made since the outbreak of conflict in Iran.
WTI Drops Below $70 Amid Improved Shipping Confidence
West Texas Intermediate (WTI) crude has also slipped below $70 per barrel. Growing confidence in a potential U.S.-Iran agreement has encouraged more tankers to transit through the Strait of Hormuz, easing logistical concerns. Supply has increased across key market segments, with buyers seeing higher crude flows from the Middle East and other exporting regions — including West Africa.
Brent’s Near-Term Spread Shifts to Bearish Contango
A notable shift occurred in Brent’s front-month spread: on Wednesday, it moved into bearish contango for the first time since the conflict began. This reflects weakening near-term supply concerns and improved short-term crude availability. Specifically, August Brent futures traded at $73.34 per barrel, compared to $73.59 for September contracts — indicating a discount for nearer-dated delivery and signaling reduced urgency around immediate supply tightness.
U.S. Policy Shift Adds Further Supply Pressure
A temporary U.S. decision allowing purchases of already-loaded Iranian oil is expected to further boost available supply in the near term.