Brent crude falls beneath $78 as US–Iran negotiation optimism builds

Global oil prices continued to decline on Tuesday, June 22, amid expectations of further progress in US–Iran negotiations and a potential stabilisation of supply flows through the Strait of Hormuz, Reuters reports.

As of 07:23 Baku time, Brent crude futures fell by 20 cents, or 0.3%, to $77.70 per barrel. West Texas Intermediate (WTI) dropped by 12 cents, or 0.2%, to $73.74 per barrel.

Prices had already fallen more than 3% the previous day after reports that Washington had granted Tehran a 60-day sanctions relief following the first round of peace talks. Additional pressure came from signals of reduced intensity of hostilities in Lebanon.

Analysts say that the gradual restoration of oil flows through the Strait of Hormuz continues to weigh on the market.

According to shipping data, two oil tankers carrying nearly 2 million barrels of crude passed through the strait on Monday, June 21, indicating a slow recovery in traffic after the weekend disruption caused by security concerns in the region.

By Jeyhun Aghazada