On June 16, Brent crude for August delivery closed at $78.96 per barrel, down 5.1% from the previous trading day, according to Reuters. Meanwhile, West Texas Intermediate (WTI) crude for July delivery fell 5.8% to $76.05 per barrel on the New York Mercantile Exchange.
Both Brent and WTI prices are at their lowest since early March. The decline in oil prices has occurred over four consecutive trading days, coinciding with increasing optimism about a potential peace agreement between the U.S. and Iran.
The drop in prices is attributed to expectations of the reopening of the Strait of Hormuz and the resumption of Iranian oil exports. The Wall Street Journal reported that the U.S. plans to immediately apply sanctions waivers on Iranian crude oil and petroleum product sales following the formal signing of a memorandum of understanding (MOU) scheduled for June 19.
These waivers are expected to include financial transactions, transportation, and insurance services necessary for oil trading. President Donald Trump stated to reporters that he would release the full text of the agreement with Iran in the coming days.
However, it remains uncertain whether oil supply will return to pre-war levels immediately. Even if navigation through the Strait of Hormuz resumes, normalizing shipping, insurance, and logistics may take time, meaning the complete recovery of energy flows will depend on subsequent negotiations and the stability of the region.
* This article has been translated by AI.
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