Oil prices continue their downward slide, approaching pre-war levels in the Middle East, as growing numbers of tankers resume transit through the Strait of Hormuz. This shift follows diplomatic progress between the U.S. and Iran, raising hopes for the release of hundreds of vessels stranded in the Persian Gulf.
Brent and WTI Retreat Amid Shipping Optimism
On Wednesday, Brent crude futures fell toward $76 per barrel. The International Maritime Organization (IMO) announced it had received security assurances clearing the way for hundreds of ships to exit the Gulf via the Strait of Hormuz — a key global oil chokepoint.
U.S. West Texas Intermediate (WTI) crude also declined, trading near $72 per barrel. Positive developments in ongoing efforts to resolve the maritime standoff — and free thousands of seafarers — are contributing to the bearish sentiment.
Over 1,100 Ships Still Stranded
Despite a U.S.-Iran framework agreement aimed at ending regional hostilities, approximately 1,150 commercial vessels of various types remain effectively locked in the Gulf, according to an analysis by German insurer Allianz cited by Germany’s DPA news agency.
UAE Exports Rebound Strongly
The International Energy Agency (IEA) reported that UAE oil exports rebounded to nearly 85% of pre-conflict levels by early June. This recovery has been supported by expanded use of pipelines, storage infrastructure, and alternative shipping routes.
New U.S. Sanctions Waiver Opens Iranian Oil Access
A new 60-day U.S. sanctions waiver now allows global oil investors — including American refiners — to purchase Iranian crude and refined products. This move further supports expectations of increased supply.
New Gulf Transit Talks Raise Concerns
Meanwhile, Iran and Oman have launched talks on a joint framework for managing Strait of Hormuz transit — including potential tolls. The discussions have sparked concerns that Tehran could impose passage fees, adding a layer of uncertainty to future shipping costs and regional stability.