Oil prices fall as US-Iran agreement eases Middle East supply disruption fears despite a larger-than-expected US inventory drawdown.
West Texas Intermediate crude slid 2.35% to $73.20, hitting a three-month low, as investors prioritized easing Middle East tensions over bullish inventory data. A US-Iran deal guarantees safe passage through the Strait of Hormuz, a critical oil transit route, in exchange for sanctions relief and frozen funds release.
The decline overshadowed a sharper-than-expected 8.262M barrel draw in US crude inventories for the week ending June 12, nearly double the 4.6M barrel decline analysts forecast. The EIA reported the tenth consecutive weekly drop, pushing stockpiles to multi-year lows.
Markets now await further talks between US and Iranian officials in Switzerland on Friday to finalize agreement details, reinforcing expectations of stabilized regional oil flows.