Oil prices continued to decline on Thursday, 25 June, moving closer to levels seen before the conflict, as tankers stranded near the Strait of Hormuz resumed transit following an initial agreement to end the US-Israeli conflict with Iran, reducing fears of supply disruptions.

Brent crude futures for August delivery were down 40 cents, or 0.54%, at $73.34 per barrel, while US West Texas Intermediate (WTI) crude slipped 27 cents, or 0.38%, to $70.07 per barrel.

The downward trend followed Wednesday’s sharp losses, with Brent crude dropping more than $3 and WTI closing nearly $3 lower, as concerns over oil supply eased.

Several segments of the oil market are witnessing a surge in supply as buyers are being flooded with crude offers from the Middle East and other producing regions, including West Africa.

Both the US and Iran have indicated positive developments following preliminary talks aimed at ending the conflict. However, the two sides have occasionally offered differing accounts of the discussions, and further negotiations on issues such as Iran’s nuclear program and a ceasefire in Lebanon continue to face challenges. Nevertheless, growing optimism about a durable agreement has encouraged more tankers to transit the Strait of Hormuz with their tracking systems visibly switched on.