Oil Prices Slide as Strait of Hormuz Partly Reopens

Overview

• Late June shipping data and IMO counts show a rising number of tankers transiting the Strait of Hormuz, signaling a partial reopening after the U.S.–Iran temporary ceasefire.
• The U.S. Treasury’s limited suspension of sanctions on Iranian oil has legally freed additional Iranian shipments to enter global markets through a window that runs until August 21.
• Market response has been swift: Brent and WTI futures have fallen to roughly pre‑conflict or four‑month lows as traders price in the return of Gulf supply.
• Russia’s exports have also climbed to their highest level this year and large volumes of crude are afloat, creating extra competition that may deepen discounts and complicate where cargoes land.
• Analysts say full normalization will take weeks because of demining, coordinated convoy management and shipowner caution, and the temporary nature of agreements means flows could reverse if talks fail.