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Brent crude oil prices fell by 16 cents (0.2%) to $78.80 per barrel.
BY Mahnoor | 17-06-2026
Oil prices dropped slightly on Wednesday, following previous losses as investors reacted to the US-Iran peace deal. However, prices didn’t fall much more because it is still unclear if shipping through the Strait of Hormuz will fully restart.
Brent crude fell by 16 cents (0.2%) to $78.80 per barrel, while US West Texas Intermediate fell by 25 cents (0.3%) to $75.80 per barrel.
On Tuesday, both oil price benchmarks dropped by about 5% for the second day in a row, hitting their lowest levels in three months. This happened because people hope a US-Iran deal will let oil flow through the Strait.
Priyanka Sachdeva, a senior analyst at Phillip Nova, said markets are lowering oil prices because they are no longer worried about the risks of political conflict.
However, returning to normal will not be easy. Even though political talks are moving forward, the number of oil tankers passing through the Strait has not yet fully returned to normal.
Under the deal, the United States would stop blocking Iran’s ports, and in return, Iran would allow oil tankers to pass through the Strait, which has been blocked since US and Israel attacks on February 28.
“Oil prices dropped because people expect the Strait of Hormuz to reopen after the peace deal. However, traders are waiting for more details before selling more,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
He added that WTI oil prices will likely fluctuate between $70 and $90 per barrel.
Before the market closed, about 20% of the world’s oil and gas supplies passed through the Strait.
On Tuesday, more details about the temporary peace deal came out. President Donald Trump said the deal would prevent Iran from getting nuclear weapons, and a US official said it would let Iran sell oil once signed.
This private agreement extends the shaky ceasefire from April for another 60 days to give leaders time to work toward a lasting peace.
However, industry experts say it could take weeks, months, or even years to return to normal production levels.
Israel has also stayed away from recent peace agreements, making people unsure if they will actually work.
Israeli drones hit three cars in southern Lebanon on Tuesday, killing at least four people and injuring others, according to Lebanon’s news agency. This event caused Trump to issue a rare public criticism.
Data shows that China’s crude oil processing dropped 9.1% in May compared to last year, reaching its lowest level in nearly four years. This suggests refiners are using up their stored oil due to the war in Iran.
Additionally, a report from the American Petroleum Institute stated that US crude oil stocks decreased by 8.3 million barrels during the week ending June 12.
The oil supply dropped by more than the expected 4.6 million barrels. Official data will be released by the Energy Information Administration at 10:30 am ET on Wednesday.
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