HOUSTON: Benchmark oil prices fell more than $3 on Wednesday to their lowest level since before the start of the Iran war as supply concerns eased with more stranded oil tankers exiting the Strait of Hormuz.

US crude futures, meanwhile, slipped below $70 a barrel to their lowest since March 2. Brent crude futures, the global benchmark, were down $3.08, or 4.02 per cent, at $73.98 a barrel as of 1715 GMT, and US West Texas Intermediate was down $3.13, or 4.06%, to $73.95 a barrel.

Brent touched a low of $73.22, its weakest since February 27, the day before US-Israeli strikes on Iran.

Around 20 million barrels of crude oil have exited the Strait of Hormuz in the last 24 hours, US Energy Secretary Chris Wright said on Wednesday at the Reuters Global Energy Forum in New York, adding that a return to normal oil flows was delayed due to Iranian mines in the strait.

Iran will not be able to block the strait going forward, Wright said, adding that the US will ensure flows even without a deal with Tehran.

Three stranded tankers carrying 5 million barrels of crude oil were exiting the strait on Wednesday, with two heading to Asia, shipping data showed, as the interim deal between Iran and the US unlocks more supply that has been stuck in the Gulf.

Physical crude oil cargoes were selling at discounts across the globe, changing trade flows as markets come under pressure from fast-rising Middle Eastern supply with Iran set to boost sales following a temporary reprieve from US sanctions.

Prices for Brent crude for second-month delivery were also trading higher than prices for prompt delivery for the first time since the war, a sign of increased near-term supply.

“Positive signals from the Persian Gulf are fuelling optimism about oil flows through the Strait of Hormuz. Vessel crossings increased in recent days, although they remain well below pre-war levels,” ING analysts wrote in a note.

The US also authorised Iranian oil sales this week, easing decades-old sanctions as it pushes toward a final peace deal with Tehran in return for commitments on nuclear inspections and free transit through the Strait of Hormuz.

“If sanctions are eased, Iranian production and exports could ramp up relatively quickly given the substantial amount stored on tankers we are likely talking weeks rather than months,” said Tim Waterer, chief market analyst at KCM Trade.

Oman said it would keep the Strait of Hormuz open to shipping without imposing tolls and had designated two temporary routes north and south of the existing shipping lane to facilitate the safe passage of vessels leaving the region.

Uncertainty remains over the durability of the US-Iran accord, however. US President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections into “infinity”, although Tehran said it had made no such concession.

Published in Dawn, June 25th, 2026