Oil Prices Slump Again, Brent Falls to US$76 per Barrel

Global oil prices fell again during Wednesday morning trading. Based on Refinitiv data, Brent crude was at US$76.44 per barrel, down 0.83% from the previous close, while West Texas Intermediate (WTI) corrected 0.82% to US$72.61 per barrel. The decline extends a downward trend that began in mid-June. Over the last nine trading days, Brent has lost around 15% of its value from US$90.38 per barrel on 11 June, while WTI has dropped more than 17% from US$87.71 per barrel over the same period. Selling pressure mounted after the market grew more confident that supply disruption risks from the Middle East were easing. Attention has focused on the Strait of Hormuz, the strategic shipping lane vital to global energy trade. Several tankers previously held up by the Iran conflict are now preparing to resume transit, reducing concerns over the distribution of global oil. Sentiment was further bolstered after Washington granted Tehran a 60-day sanctions reprieve following the start of peace talks. The move allows Iran to continue exporting oil to international markets, adding to expectations of looser global supply. Other diplomatic developments also weighed on prices. Oman and Iran agreed to continue discussions on shipping governance in the Strait of Hormuz. Meanwhile, US Secretary of State Marco Rubio stressed that any attempt by Iran to impose transit fees would violate international law, reinforcing the view that global energy trade routes will remain open. However, the market has not fully erased the geopolitical risk premium. President Donald Trump claimed Iran had agreed to unlimited nuclear inspections, but Tehran immediately denied the assertion. The conflicting stances have kept some market participants cautious about the potential for renewed tensions. On the supply side, the normalisation of oil flows from the Gulf region is not expected to be immediate. Rearranging vessel traffic, restarting oil wells, restoring energy infrastructure and clearing naval mines will take considerable time. Some shipowners are still weighing operational risks before resuming full sailings in the area. Analysts note that global oil inventories have been drawn down during the period of disrupted shipments through the Strait of Hormuz. As a result, commercial stockpiles could continue to shrink in the short term before fresh supplies from Gulf states return to normal volumes. Saudi Aramco CEO Amin Nasser has previously warned that prolonged disruption in the Strait of Hormuz risks delaying the stabilisation of global oil markets until 2027, noting that such interruptions could affect nearly 100 million barrels of supply per week.