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Key Moments

  • WTI trades around $72.50 per barrel in Asian hours after bouncing from a three-month low of $71.94, but remains down on the day.
  • Improved shipping access through the Strait of Hormuz and a new 60-day US waiver on Iranian crude purchases have weighed on crude prices.
  • Conflicting signals on Iran’s nuclear file and fee concerns over potential Strait of Hormuz transit charges have kept geopolitical risk in focus.

WTI Extends Decline Despite Intraday Rebound

West Texas Intermediate (WTI) crude futures stayed under pressure for a third consecutive session, changing hands near $72.50 per barrel during Asian trading on Wednesday. Prices staged a partial recovery after touching a three-month intraday low at $71.94, yet the benchmark continued to trade in negative territory.

Shipping Resumes Through Strait of Hormuz

The latest leg lower in crude prices followed signs of easing supply disruptions in the key Middle East transit route. A rising number of commercial tankers resumed voyages through the Strait of Hormuz after progress in US-Iran peace talks.

The International Maritime Organization (IMO) stated it had obtained critical security assurances, a development expected to clear the way for hundreds of vessels that had been held up in the Persian Gulf. The move is also anticipated to support the evacuation of thousands of seafarers who had been unable to leave the area.

UAE Exports Recover and US Issues Iran Waiver

At the same time, the International Energy Agency (IEA) reported a strong rebound in oil exports from the United Arab Emirates in early June. According to the agency, UAE shipments recovered to nearly 85% of pre-conflict volumes by making use of pipelines, storage sites, and alternative maritime routes.

Expectations for global supply were further bolstered by a fresh 60-day waiver from the United States, allowing international buyers and domestic refiners to legally purchase Iranian crude and refined products. In parallel, Iran and Oman opened discussions on a joint framework to manage the Strait of Hormuz.

While the initiative is aimed at coordinating transit, market participants have been unsettled by the possibility that fee mechanisms could be incorporated into the arrangement. This has raised concerns that Iran might introduce new tariffs on shipping companies using the passage.

FactorDevelopmentMarket Impact
WTI price actionTrades near $72.50 after low of $71.94Third straight day of losses
Strait of Hormuz trafficMore tankers resume transitReduced supply disruption concerns
UAE exportsRebound to nearly 85% of pre-conflict levelsAdditional supply back on the market
US Iran waiver60-day permission to buy Iranian crude and productsFurther potential supply increase

Peace Process Advances Amid Persistent Uncertainty

Despite visible diplomatic progress, questions remain about the sustainability of the peace framework. Iran’s chief negotiator delivered a strong message that the narrow waterway would stay under firm Iranian control and would “never” revert to conditions seen before the conflict.

Separately, additional diplomatic efforts are unfolding as Washington hosts a new round of talks between Israel and Lebanon. The discussions are aimed at achieving a ceasefire involving Iran-backed Hezbollah forces.

Mixed Messages on Iran’s Nuclear Commitment

The broader geopolitical picture has been further clouded by divergent comments on Iran’s nuclear stance. US President Donald Trump said that Tehran had “fully and completely” agreed to reopen its nuclear facilities to international inspectors. However, Iranian Foreign Minister Abbas Araghchi quickly pushed back, stating that substantive talks over the nuclear program had not yet begun.

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