Oil prices fell over 3% as traders priced in a potential Strait of Hormuz reopening and weaker physical demand signals.
Brent crude futures dropped more than 3% on Tuesday, briefly trading below $80 per barrel for the first time since early June. The decline followed reports suggesting an imminent resolution to disruptions in the Strait of Hormuz, a critical chokepoint for global oil shipments.
Analysts’ estimates for a full resumption of tanker traffic through the strait varied widely, adding to market uncertainty. Weaker physical demand indicators, particularly from Asia, also weighed on sentiment. The last time Brent traded below $80 was in early June, when prices dipped amid broader macroeconomic concerns.
The move reflected investor positioning ahead of potential supply normalization, though the timing and scale of any rebound in Hormuz traffic remained unclear.