Oil Price Today (June 24): Crude oil near 4-month low as more tankers pass through Hormuz. What are experts saying?

Synopsis

Oil prices extended their decline on Wednesday, hovering near the four-month lows touched in the previous session, as signs emerged that more oil tankers stranded in the Gulf since the start of the Iran conflict are preparing to move through the Strait of Hormuz.

Oil prices extended their decline on Wednesday, hovering near the four-month lows touched in the previous session, as signs emerged that more oil tankers stranded in the Gulf since the start of the Iran conflict are preparing to move through the Strait of Hormuz.

Crude oil price on June 24

Brent crude futures fell 37 cents, or 0.5%, to $76.71 a barrel, while U.S. West Texas Intermediate crude slipped 36 cents, or 0.5%, to $72.85 a barrel. Both benchmarks had already lost nearly 1% on Tuesday and hit their weakest levels since early March.

The market has been under pressure this week after Washington granted Tehran a 60-day sanctions waiver following initial peace talks, allowing Iran to continue selling oil. Prices have also been weighed down by easing hostilities in Lebanon.

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On Tuesday, Oman and Iran agreed to continue discussions on the future administration of navigation through the Strait of Hormuz. U.S. Secretary of State Marco Rubio said any attempt by Iran to impose transit fees would be in violation of international law.

However, questions remain over how durable the agreement will prove. U.S. President Donald Trump said on Tuesday that Iran had agreed to allow nuclear inspections "into infinity," a claim Tehran disputed, saying no such concession had been made during negotiations.

What’s next for prices?

Despite the recent slide in oil prices, a complete reopening of Hormuz is expected to be a complex process. It will require careful coordination of vessel movements, restarting oil wells, repairing infrastructure, and agreeing on de-mining operations. Some shipowners also remain wary of operating conditions in the strait and the wider Persian Gulf.

Analysts note that global oil inventories were depleted during the extended disruption of shipping through the Strait of Hormuz and will take time to rebuild. Stockpiles could continue falling before fresh Gulf supplies begin reaching international markets.

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Last month, Saudi Aramco Chief Executive Officer Amin Nasser cautioned that disruptions in the Strait of Hormuz could delay a return to stability in global oil markets until 2027. According to Nasser, prolonged interruptions could affect nearly 100 million barrels of oil supply each week. Saudi Aramco remains the world's largest oil producer.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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