Brent Crude Hits Lowest Since Iran War Start Amid Supply Easing, Tankers Exit Hormuz

Brent crude futures fell over $3 to their lowest level since before the Iran war began. US West Texas Intermediate also dropped by nearly $3 to hit a low of $73.95 a barrel.

Around 20 million barrels of oil have exited the Strait of Hormuz in the last day, according to US Energy Secretary Chris Wright. He added that normal flows were delayed due to Iranian mines in the strait but would eventually resume as Iran will not be able to block it.

Three tankers carrying five million barrels of crude oil are exiting the strait on Wednesday, with two heading for Asia. This comes as an interim deal between Iran and the US unlocks more Gulf supply.

Physical crude cargoes were selling at discounts globally, changing trade flows due to fast-rising Middle Eastern supply from Iran after a temporary reprieve from sanctions.

Prices for Brent crude for second-month delivery traded higher than prompt delivery for the first time since the war, indicating increased near-term supply. Positive signals from the Gulf are fueling optimism about oil flow through the Strait of Hormuz.

The US also authorized Iranian oil sales this week, easing decades-old sanctions as it pushes towards a final peace deal with Tehran in return for commitments on nuclear inspections and free transit through the Strait of Hormuz.

Oman said it would keep the Strait open to shipping without tolls and had designated two temporary routes north and south of the existing lane. However, uncertainty remains over the durability of the US-Iran accord.

US crude stocks fell by 15.1 million barrels to 743.3 million barrels in the week ended June 19, the lowest level since 1984. J.P. Morgan lowered its second-half 2026 Brent crude price forecast due to lower-than-expected inventory draws and softer demand for oil.