Key Moments
- WTI traded around $73.40 per barrel in European hours on Tuesday, trimming earlier losses after an intraday rebound.
- Tehran rejected claims it agreed to allow IAEA inspectors back, stating it had made “no new commitments” on nuclear inspections.
- Washington granted Iran a 60-day waiver to resume oil sales, while Iran shipped more than 30 million barrels during the past week.
Price Action and Market Context
West Texas Intermediate (WTI) crude futures remained under pressure for a second straight session, trading near $73.40 per barrel during Tuesday’s European session. Earlier losses were partially recovered as traders reassessed the geopolitical backdrop and uncertainty surrounding Iran’s nuclear program.
Crude prices initially extended declines before stabilizing, with the shift driven in part by mixed signals from diplomatic efforts between the United States and Iran and their potential implications for global oil supply.
Iran Nuclear Dispute and Diplomatic Signals
Market sentiment was rattled after Tehran firmly rejected a statement from US Vice-President JD Vance that Iran would allow International Atomic Energy Agency (IAEA) nuclear inspectors to return to the country. The remarks followed the first round of bilateral talks in Washington aimed at securing a permanent end to the conflict.
Iran’s foreign ministry, speaking to state media, responded that the government had made no new commitments
regarding its nuclear inspection framework, directly contradicting the earlier assertion and injecting fresh uncertainty into the diplomatic outlook.
US Waiver and Shifting Flows Through the Strait of Hormuz
Earlier, oil prices had weakened as signs of progress in US-Iran talks had eased some supply concerns. Washington granted Iran a 60-day waiver, allowing it to resume oil sales in international markets. This move fueled expectations of a faster-than-previously-anticipated increase in global crude supply.
Shipping patterns in and around the Strait of Hormuz have shifted as a result. Traffic through the key waterway has risen, with exporters such as Kuwait and the United Arab Emirates opting to use alternative routes. At the same time, Iran exported more than 30 million barrels over the past week, highlighting the near-term supply impact of the waiver.
| Factor | Recent Development |
|---|---|
| WTI price level | Trading around $73.40 per barrel during European hours on Tuesday |
| Diplomatic backdrop | Tehran denies allowing IAEA inspectors back and says it made “no new commitments” |
| US policy | 60-day waiver granted to Iran to resume oil sales in international markets |
| Iranian exports | More than 30 million barrels shipped during the past week |
API Inventory Data in Focus
Traders are also awaiting the latest weekly crude stockpile figures from the American Petroleum Institute (API), scheduled for release later on Tuesday. The report is poised to provide another key input for price direction.
A larger-than-expected drawdown in crude inventories would suggest stronger demand and could lend support to WTI prices. Conversely, a build in stockpiles that exceeds forecasts may signal weaker demand or an oversupplied market, potentially exerting fresh downward pressure on prices.
This story was corrected on June 23 at 09:24 to clarify that the reference is to the International Atomic Energy Agency (IAEA), not the International Atomic Agency.
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