Brent crude extends losses for a third day amid signs of de-escalation in the Strait of Hormuz, easing supply concerns.
Brent crude futures fell over 2% to around $86 per barrel on Wednesday, marking a third consecutive daily decline. The drop extends the commodity’s biggest weekly loss since June, driven by optimism over potential supply resumptions through the Strait of Hormuz.
Markets reacted to reports of resumed talks between Oman and Iran, alongside claims that oil shipments are moving despite transponders being disabled. While official data shows limited traffic, U.S. officials suggest significant volumes may still be flowing. Refined product costs remain elevated, but the broader oil retreat has eased pressure on bond markets.
The decline in oil prices follows a shift in U.S. strategy toward economic sanctions rather than military action, reducing immediate supply disruption risks.