Oil prices moved higher on June 23, after a sharp fall in the previous session. Brent crude hovered close to AED 286.46 ($78) per barrel as markets reacted to developments in US-Iran peace talks and the outlook for crude flows through the Strait of Hormuz.
Brent crude futures rose 24 cents, or 0.38%, to AED 287 ($78.15) per barrel. US West Texas Intermediate climbed 33 cents, or 0.46%, to AED 272.48 ($74.19) per barrel. Trading activity stayed cautious as investors assessed whether recent diplomatic signals can hold.
Crude oil markets reacted to changing expectations from US-Iran talks aimed at ending the conflict that started earlier this year. Early progress in these discussions has affected sentiment in global energy markets. Reports also stated that the talks include a plan to reopen key supply routes, including the Strait of Hormuz.
The route handles a large share of global oil trade and remains central to price movements. Markets responded earlier in the week with volatility after reports of a US sanctions waiver for Iran, followed by signs of reduced tensions in parts of West Asia.
Traders continued to monitor shipping activity through the Strait of Hormuz. Ship-tracking data showed two crude tankers carrying nearly 2 million barrels passed through the route on June 22. This signifies a partial recovery in maritime movement after disruptions linked to regional tensions. Kuwait and the United Arab Emirates maintained export flows through alternate arrangements. Iran reportedly moved more than 30 million barrels of crude over the past week.
Oil prices dropped more than 3% in the previous session after reports of a US sanctions waiver for Iran. The waiver allows several buyers, including US refiners, to purchase Iranian crude, although market caution persists. Additional pressure came from expectations of improved supply flows and easing geopolitical risks after reports of reduced hostilities in parts of Lebanon under the broader agreement framework.
Data from the US Department of Energy showed crude oil stocks in the Strategic Petroleum Reserve dropped to 331.2 million barrels last week. This is the lowest level since June 1983. The fall reflects pressure on supply during ongoing geopolitical tensions and changes in energy policy.
Traders are also watching US bond yields and currency movements, which continue to affect oil prices. Lower risk in global markets has led to cautious trading as investors assess whether recent diplomatic progress will continue.
Traders are tracking US-Iran talks and the safety of oil movement through the Strait of Hormuz. Any disruption in this route can quickly affect global oil supply expectations.
Investors are also watching for updates from Washington and Tehran on sanctions, inspections, and energy trade. Brent crude has stayed near AED 286.46 for now, but prices can change with shifts in political events and shipping conditions in the Gulf region.
Also Read: Oil Price Today: Brent Falls 2% to AED 291 as US-Iran Switzerland Talks Ease Hormuz Supply Fears