Oil Under Pressure from Hormuz Flow, What's Next?
Oil prices weakened for the third consecutive day as shipping flows through the Strait of Hormuz continued to increase. The market also saw signs of progress in indirect talks between the United States and Iran, easing concerns about supply disruptions.
West Texas Intermediate, or WTI, hovered near US$68 per barrel after falling around 3% in the previous two sessions. Meanwhile, Brent for September closed down 1.9% at US$71.57 per barrel on Wednesday. In Singapore, WTI August fell 0.8% to US$68.80 per barrel.
Pressure on oil prices intensified after supply through the Strait of Hormuz was reported to have reached more than 10 million barrels per day. This indicates Iran's ability to halt shipping flows is now more limited. US President Donald Trump also welcomed the progress in negotiations, although the next round of talks is still awaiting a new schedule from Qatar.
Qatar stated that a follow-up meeting would be scheduled as soon as possible after the funeral of former Iranian Supreme Leader Ali Khamenei, who was killed in an airstrike at the start of the conflict. Funeral ceremonies are expected to begin on July 4th and last several days, according to Iranian state media.
Despite weakening oil prices, geopolitical risks have not completely disappeared. Iran has reiterated its desire to control shipping traffic in the Strait of Hormuz. Furthermore, the issue of Iran's nuclear program and the conflict in Lebanon remain major obstacles to the 60-day ceasefire. Meanwhile, US oil stocks fell to their lowest level since March 2025 after declining for 12 consecutive weeks. (asd)*
Source: Newsmaker.id
