Brent and WTI crude futures drop nearly 3% as traders anticipate resumed Iranian supply and weaker physical demand.
Oil prices extended losses to a three-month low, with Brent crude futures falling $2.48 to $80.69 a barrel and U.S. West Texas Intermediate down $2.48 to $78.27. The decline marks a fourth consecutive session of losses, driven by expectations of a potential Iran-U.S. peace deal and the reopening of the Strait of Hormuz.
Prices had already slumped nearly 5% on Monday following an interim agreement to end the conflict, though details remain scarce. Iranian and U.S. officials are set to resume talks in Switzerland on Friday. Analysts warn that while near-term risks persist, factors like depleted inventories and seasonal demand could limit further downside.
The Strait of Hormuz, a critical chokepoint for global oil shipments, had been closed during the conflict, heightening supply concerns. Markets are now weighing the impact of its potential reopening against broader demand trends.