Oil futures extended losses on Thursday, with Brent and West Texas Intermediate (WTI) both slipping for a fourth consecutive session as transport through the Strait of Hormuz moved closer to normal and market concerns about prolonged Middle East supply disruptions eased.
As of 20:24 ET (00:24 GMT), Brent Oil Futures expiring in August had declined 0.5% to $73.38 per barrel. WTI crude futures were down 0.3% at $70.14 per barrel. Both benchmarks had tumbled by nearly 4% in the prior session.
Brent traded at its lowest level since Feb. 27 - the day before the U.S.-Iran conflict began - effectively removing much of the geopolitical premium that had been built into prices earlier in the crisis.
Market participants remained focused on the Strait of Hormuz, the narrow waterway through which roughly a fifth of global oil consumption transits. Activity in the strait is considered a direct barometer of the risk premium attached to Middle East crude supplies.
U.S. Energy Secretary Chris Wright reported that crude flows through the strait were close to normal levels, noting that roughly 20 million barrels had exited the waterway over the previous 24 hours under military protection. Shipping data cited in industry reports showed a rising number of vessels restarting transit through the strait after weeks of interruptions, and several tankers that had been stranded in the Gulf restarted their voyages.
Those shifts, combined with expectations that Iranian oil exports may recover following temporary U.S. sanctions relief and an easing of regional hostilities, helped calm investor fears of an extended supply squeeze.
The recent slide represents a marked reversal from the peak of the crisis earlier this year, when closures and disruptions to Hormuz traffic contributed to Brent surging above $120 per barrel at the height of the turmoil.
Still, analysts warned that underlying risks remain. Any renewed escalation between Iran and the United States could quickly restore supply concerns and push prices higher.
Adding to the immediate selling pressure were mixed readings from U.S. stockpiles reported by the Energy Information Administration. For the week ended June 19, U.S. commercial crude inventories fell by 6.1 million barrels to 412.1 million barrels - the lowest level since January 2025 and a larger-than-expected draw. Stocks at the Cushing, Oklahoma, delivery hub fell by about 1.1 million barrels to their lowest level since 2014.
Offsetting those draws, however, U.S. gasoline inventories rose by 2.1 million barrels, while distillate stocks - which include diesel and heating oil - increased by 3.1 million barrels, tempering the bullish implications of the crude drawdown.
With flows through Hormuz appearing to normalize and a partial restoration of Iranian export prospects factored into the market, prices have retraced a substantial portion of earlier gains. Traders and investors, however, remain vigilant for any change in regional tensions or unexpected supply developments that could reverse the recent decline.