Oil prices slide over 3% as tanker activity in the Strait of Hormuz signals easing supply concerns amid potential Iranian exports.
Brent crude futures fell $2.32, or 3.01%, to $74.76 a barrel, hitting the lowest level since February 27. U.S. West Texas Intermediate declined $2.17, or 2.96%, to $71.04, with both benchmarks reaching multi-month lows.
The drop follows signs of increased tanker movement through the Strait of Hormuz, a key oil chokepoint. Analysts suggest markets are pricing in a potential easing of sanctions on Iran, which could quickly boost exports given stored oil reserves. Physical crude cargoes are also trading at discounts globally.
Oman announced it would keep the Strait open without tolls and designated temporary routes to ensure safe passage, further easing supply concerns.