The price of Brent crude futures, the global oil benchmark, declined by $3.34 or 4.3 per cent on Wednesday to settle at $73.74 per barrel, its lowest level before the start of the Iran war on February 28, 2026.
Also, the US West Texas Intermediate (WTI) crude futures lost $2.87 or 3.9 per cent during the session to sell for $70.34 a barrel.
The development came as supply concerns eased with more stranded oil tankers exiting the Strait of Hormuz, which had been blocked since late February.
Market analysts noted that crude oil flows through the Strait of Hormuz are similar to what they were before the start of the Iran war, as tankers exit the key waterway with the help of military escorts. Around 20 million barrels of crude oil have exited the Strait of Hormuz in the last 24 hours.
Before the war began in late February, roughly 125 ships passed through the chokepoint each day, but current traffic remains a fraction of that.
Reuters reported that three stranded tankers carrying 5 million barrels of crude oil exited the strait on Wednesday, with two heading to Asia, shipping data showed, as the interim deal between Iran and the US began to unlock more supply stuck in the Gulf.
As Middle Eastern producers scramble to move crude that has spent months stranded in the Persian Gulf, tanker rates have exploded higher. The cost of hiring a tanker in the Gulf has nearly doubled in just a week, jumping from around $106,000 per day to more than $190,000 per day. For some very large crude carriers (VLCCs) hauling cargoes through Hormuz, daily earnings have surged to nearly $470,000.
The US also authorised Iranian oil sales this week, easing decades-old sanctions as it pushes toward a final peace deal with Iran in return for commitments on nuclear inspections and free transit through the Strait of Hormuz.
Oman said it would keep the strait open to shipping without imposing tolls and had designated two temporary routes north and south of the existing shipping lane to facilitate the safe passage of vessels leaving the region.
Crude inventories in the US remained tight on strong refining demand and amid a release of oil from the government’s emergency stash. The Energy Information Administration (EIA) said crude stocks, including commercial and those in the Strategic Petroleum Reserve, fell by 15.1 million barrels to 743.3 million barrels in the week ended June 19, which was the lowest level since 1984.
