Oil prices edge lower as markets assess Strait of Hormuz developments amid Iran-US talks

Brent crude futures fell 20 cents, or 0.3 percent, to $77.70 per barrel while US West Texas Intermediate (WTI) crude declined 12 cents, or 0.2 percent, to $73.74 per barrel at 0323 GMT

SINGAPORE: (UrduPoint/UrduPoint / Pakistan Point News-June 23^rd, 2026) The oil prices slipped slightly on Tuesday, extending losses from the previous session, as investors continued to monitor developments surrounding crude oil shipments through the Strait of Hormuz following recent US–Iran diplomatic engagement.

Brent crude futures fell 20 cents, or 0.3 percent, to $77.70 per barrel, while US West Texas Intermediate (WTI) crude declined 12 cents, or 0.2 percent, to $73.74 per barrel at 0323 GMT.

The market had already dropped more than 3 percent on Monday after Washington granted Iran a 60-day sanctions waiver following early-stage peace discussions. Sentiment was also influenced by reports of reduced hostilities in Lebanon under a broader understanding linked to the negotiations.

Earlier volatility had been triggered by concerns that the fragile agreement could collapse, including warnings from US President Donald Trump regarding possible renewed military action if Iran disrupted shipping in the strategically important Strait of Hormuz, after Tehran indicated restrictions on the waterway.

Market analysts said investor sentiment remains cautious despite diplomatic progress.

Tim Waterer, chief market analyst at KCM Trade, said continued mistrust between Washington and Tehran is keeping markets uncertain, adding that a return to pre-conflict oil price levels is unlikely in the near term.

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In a social media post on Monday, Trump said Iran would be expected to agree to inspections to ensure compliance over its nuclear programme. He later told reporters that the United States would respond if Tehran failed to meet its commitments.

Analysts noted that while markets had initially priced in optimism over a potential agreement and improved shipping conditions through the Strait of Hormuz, traders are now awaiting concrete evidence that the arrangement will hold and maritime traffic will fully normalise.

Ship-tracking data showed that two crude tankers carrying nearly 2 million barrels of oil passed through the Strait of Hormuz on Monday, signalling a gradual recovery in shipping activity after disruptions over the weekend.

In a separate development, data from the US Department of Energy showed that crude inventories in the Strategic Petroleum Reserve fell to 331.2 million barrels last week, the lowest level since June 1983, reflecting tightening supply conditions amid recent geopolitical tensions.