Oil prices continued to decrease on Wednesday, remaining close to the four-month lows reached in the prior session, as indications surfaced that additional oil tankers, which have been stranded in the Gulf since the onset of the Iran conflict, are getting ready to transit through the Strait of Hormuz. Brent crude futures declined by 37 cents, representing a 0.5% decrease, settling at $76.71 per barrel. Meanwhile, U.S. West Texas Intermediate crude experienced a drop of 36 cents, also a 0.5% reduction, closing at $72.85 per barrel. Both benchmarks had already declined by nearly 1% on Tuesday, reaching their lowest levels since early March.

The market has experienced downward pressure this week after Washington issued a 60-day sanctions waiver to Tehran in the wake of initial peace negotiations, permitting Iran to maintain its oil sales. Prices have also been influenced by a reduction in hostilities in Lebanon. On Tuesday, Oman and Iran reached an agreement to persist in their discussions regarding the future governance of navigation through the Strait of Hormuz. U.S. Secretary of State Marco Rubio stated that any effort by Iran to impose transit fees would constitute a violation of international law.

However, questions persist regarding the durability of the agreement. U.S. President Donald Trump stated on Tuesday that Iran had consented to permit nuclear inspections “into infinity,” a claim that Tehran contested, asserting that no such concession was made during the negotiations. Despite the recent decline in oil prices, a full reopening of Hormuz is anticipated to be a complicated endeavour. It will necessitate meticulous coordination of vessel movements, the resumption of oil well operations, infrastructure repairs, and consensus on de-mining initiatives. Some shipowners continue to express caution regarding the operational conditions in the strait and the broader Persian Gulf.

Analysts observe that global oil inventories experienced depletion amid the prolonged disruption of shipping through the Strait of Hormuz, indicating that a recovery period will be necessary for replenishment. Stockpiles may persist in their decline until new supplies from the Gulf commence their entry into international markets. Last month, Saudi Aramco Chief Executive Officer Amin Nasser warned that disruptions in the Strait of Hormuz might postpone a return to stability in global oil markets until 2027. According to Nasser, extended disruptions could impact nearly 100 million barrels of oil supply on a weekly basis. Saudi Aramco continues to hold the position of the largest oil producer globally.