Oil prices fall as vessel movements through the Strait of Hormuz increase, easing supply disruption fears amid Middle East tensions.
West Texas Intermediate crude slid to $69.40, its lowest level in four months, as shipping activity in the Strait of Hormuz rebounded. The decline follows data showing 24 commodity vessels transited the critical waterway on Monday, including oil tankers and bulk carriers, with traffic continuing on Tuesday.
The recovery in Hormuz traffic contrasts with earlier concerns over potential supply disruptions due to geopolitical tensions. Last week’s API report showed US crude inventories fell by 6.072 million barrels, extending a downward trend, while the EIA’s weekly report is expected later Wednesday.
Market focus remains on US-Iran discussions, with envoys meeting Qatari officials in Doha. Progress in talks could further pressure oil prices, while renewed tensions may reverse the decline.