Oil prices have dropped to their lowest levels in three months, with Brent crude falling below $80 per barrel and West Texas Intermediate (WTI) sliding toward $75. The decline comes amid growing investor optimism following expectations of a U.S.-Iran diplomatic agreement set to be signed Friday in Switzerland. The deal is expected to offer Tehran a range of economic incentives—including the immediate resumption of oil exports—fueling hopes of increased global supply.
Market Reaction
On Wednesday, June 17, 2026, Brent crude traded near $78 per barrel, while WTI hovered just above $75—marking its fourth consecutive session of losses. Markets remain closely focused on the potential lifting of restrictions at the Strait of Hormuz. Over the past 24 hours, there has been a noticeable uptick in Iranian-origin cargo transiting the strait. However, tankers from other countries are expected to resume passage only after the agreement formally takes effect—pending reassurances on long-term stability, as shipping companies remain cautious.
Supply Pressures Build
Additional shipments from the region are anticipated to bolster global refinery inventories. This coincides with higher OPEC+ export quotas and rising output from the United Arab Emirates, which exited the cartel during the war. Meanwhile, U.S. industry data revealed that domestic crude oil inventories fell by 8.3 million barrels last week.