Oil Falls for Third Straight Day as Hormuz Flows Recover, US-Iran Talks Advance
Summary
- Oil prices extended losses for a third straight session on expectations of recovery in the Strait of Hormuz and progress in US-Iran talks.
- The US government said crude shipments through the Strait of Hormuz topped 10 million barrels a day, indicating Iran's capacity to disrupt global oil supplies is limited.
- International oil prices have continued to fall even after their worst quarter since 2020, while the UAE has restored crude exports to prewar levels.
Forecast Trend Report by Period
Oil fell for a third straight trading day as flows through the Strait of Hormuz recovered and expectations grew for progress in US-Iran talks.
West Texas Intermediate traded near $68 a barrel on July 1, while Brent had closed below $72 a barrel a day earlier, Bloomberg reported. Crude had already fallen about 3% over the previous two sessions and remained under pressure.
The US government said crude shipments through the Strait of Hormuz exceeded 10 million barrels a day. That points to limits on Iran's ability to disrupt global oil supplies by blocking the waterway.
President Donald Trump said indirect talks between the US and Iran were making progress.
Qatar said the next round of talks between Washington and Tehran would be held as soon as possible after funeral proceedings for Iran's supreme leader, Ali Khamenei, are completed. Iran's state media reported that the funeral will begin on July 4 and continue for several days.
International oil prices have continued to slide even after posting their worst quarter since 2020. Despite recent military exchanges between the US and Iran, oil shipments through the Strait of Hormuz have continued, and the United Arab Emirates has restored crude exports to prewar levels using tankers and pipelines.
