WTI oil prices stabilized around $69.70 per barrel in Asian trading on Wednesday, reflecting eased supply anxieties as US-Iran diplomatic efforts in Doha progress. Crude oil prices declined amid improving prospects for a lasting resolution to tensions in the Strait of Hormuz following recent military clashes.
Both nations paused military confrontations in the strategic waterway, enabling renewed oil vessel movements despite Iran’s insistence on regulating maritime traffic. This de-escalation has allowed shipments to recover, though Tehran maintains its position on controlling Hormuz transit.
Geopolitical easing triggered analysts to lower 2026 oil price forecasts for the first time since the conflict began, breaking a five-month upward trend. Reuters data indicates the reopening of the Hormuz Strait has reduced supply disruption risks, but analysts warn of a looming surplus as Iranian and Russian crude exports rebound rapidly, with Iran transporting over 40 million barrels post-blockade lift and Russian shipments hitting record levels.
Meanwhile, declining US crude oil inventories—falling 6.1 million barrels for the week ended June 26—partially offset downward price pressure. Gasoline stock declines followed a similar pattern, influencing energy market dynamics. Final confirmation from the US Energy Information Administration’s (EIA) inventory report, due later today, is awaited to validate these trends.
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