Oil prices moved lower on Wednesday as investors monitored developments in negotiations between the United States and Iran after Washington indicated that diplomatic discussions were advancing.
Brent crude futures for July delivery, the global oil benchmark, dropped 2.5% to $109.25 a barrel by 04:44 ET (08:44 GMT), while U.S
West Texas Intermediate crude futures fell 1.9% to $102.35 a barrel. Both benchmarks had already declined by around 1% during Tuesday’s session. Tankers leave Strait of Hormuz as supply optimism improves Reuters reported, citing shipping data from LSEG and Kpler, that two Chinese-flagged supertankers carrying crude oil exited the Strait of Hormuz on Wednesday, fuelling hopes that energy flows through the strategically important route could gradually resume.
The South Korean-flagged Very Large Crude Carrier Universal Winner was also reported to be leaving the narrow passage off Iran’s southern coastline, which has effectively remained closed to tanker traffic since the outbreak of the U.S.-Israeli conflict with Iran in late February. U.S. President Donald Trump told lawmakers on Tuesday evening that the Iran war could end “very quickly.” Earlier this week, Trump also stated that he had delayed a planned strike against Iran and suggested negotiations with Tehran were progressing positively.