Brent Drops Further

Brent crude oil dropped to around $77.2 per barrel on Tuesday, extending losses from the previous session to its lowest level in nearly three months, as signs of progress in US–Iran peace talks eased supply concerns. In a significant development, Washington granted Iran a 60-day license to sell oil on international markets, raising expectations of a faster increase in global supply. Traffic through the Strait of Hormuz has picked up, with producers including Kuwait and the United Arab Emirates using alternative export routes, while Iran shipped more than 30 million barrels over the past week. However, uncertainty surrounding Iran's nuclear program persists, as Iranian media reports denied Vice President JD Vance's claim that Tehran would allow nuclear inspectors to return to the country.

Brent stabilized near $78 per barrel on Tuesday after facing pressure in the previous session, as investors assessed signs of initial progress in ongoing peace negotiations between the US and Iran in Switzerland. In a key development, Washington granted Iran a 60-day license to sell oil on international markets, raising expectations of a quicker recovery in global supply. Traffic through the Strait of Hormuz has also picked up, with producers including Kuwait and the United Arab Emirates finding alternative routes to export energy, while Iran shipped more than 30 million barrels over the past week. Meanwhile, Iran's nuclear program remains a major point of contention after Vice President JD Vance said Tehran had agreed to admit nuclear inspectors, a claim Iranian officials have denied.

Brent crude oil extended losses to around $77.5 per barrel on Monday, hovering near its lowest level since early March, following reports that the US and Iran have agreed to a roadmap aimed at securing a final peace agreement within 60 days. In addition, the US Treasury Department authorized the production, delivery and sale of Iranian oil and petroleum products for 60 days, boosting expectations of a faster supply recovery. Shipping activity through the Strait of Hormuz has also increased. Data showed millions of barrels still flowing through the chokepoint over the weekend. Iran has increased visible oil shipments through Hormuz to the highest level since the conflict began and cut prices for cargoes sold to China. Gulf producers are preparing to raise output, with Kuwait lifting force majeure notices and Abu Dhabi’s ADNOC resuming supply operations. A full reopening of Hormuz could release about 80 million barrels into the market, adding pressure to prices as demand remains weak.