Oil Hovers at 3-Month Low as US-Iran Deal Boosts Supply Hopes

2026-06-17 09:49 By Agna Gabriel 1 min. read

Crude oil was below $76 per barrel on Wednesday, hovering at its lowest level since early March amid expectations of a US-Iran deal that could rapidly add supply back to the global market.

The potential interim agreement, expected to be signed Friday, could allow Tehran to resume oil exports immediately and ease restrictions on shipping through the Strait of Hormuz, prompting tanker operators to reposition vessels toward the region.

The release of more than 100 oil-laden ships currently stuck in the Gulf could further boost supply.

The International Energy Agency warned that the conflict may cause a larger-than-expected demand hit and contribute to a renewed global oil surplus.

Crude prices have fallen nearly 40% from their conflict peak as geopolitical risk fades.

The decline is also easing inflation concerns, with lower fuel prices helping consumers.

However, US crude inventories continued to fall, with an industry estimate showing an 8.3 million-barrel draw last week.



News Stream
Oil Rebounds as Trump Casts Doubt on Iran Ceasefire
Crude oil rose more than 1.5% to above $77 per barrel on Wednesday after US President Donald Trump warned that bombing of Iran could resume if Tehran failed to “behave,” raising fresh uncertainty over a potential ceasefire deal. Trump said the memorandum of understanding with Iran was not final, adding that military action remained possible. The US-Iran memorandum, which extends a fragile ceasefire by 60 days, could allow talks toward a lasting truce and help rebuild depleted inventories. Still, industry officials said a full recovery in Iranian production and refining capacity could take weeks, months or even years, limiting the speed of any supply rebound. Nevertheless, oil prices remained near three-month lows, however, as the International Energy Agency warned of a looming supply surplus. In its first outlook for 2027, the IEA said global oil supply could rise by 8 million barrels a day while demand grows by only 2 million bpd, creating significant oversupply.
2026-06-17
Oil Hovers at 3-Month Low as US-Iran Deal Boosts Supply Hopes
Crude oil was below $76 per barrel on Wednesday, hovering at its lowest level since early March amid expectations of a US-Iran deal that could rapidly add supply back to the global market. The potential interim agreement, expected to be signed Friday, could allow Tehran to resume oil exports immediately and ease restrictions on shipping through the Strait of Hormuz, prompting tanker operators to reposition vessels toward the region. The release of more than 100 oil-laden ships currently stuck in the Gulf could further boost supply. The International Energy Agency warned that the conflict may cause a larger-than-expected demand hit and contribute to a renewed global oil surplus. Crude prices have fallen nearly 40% from their conflict peak as geopolitical risk fades. The decline is also easing inflation concerns, with lower fuel prices helping consumers. However, US crude inventories continued to fall, with an industry estimate showing an 8.3 million-barrel draw last week.
2026-06-17
Oil Extends Decline for Fifth Straight Session
Crude oil fell toward $75 per barrel on Wednesday, sliding for the fifth straight session and reaching its lowest level since early March, as expectations of increased supply continued to weigh on prices ahead of the signing of a peace agreement between the US and Iran. The two countries are scheduled to sign an interim deal in Switzerland on Friday, offering Tehran broad economic incentives, including the immediate resumption of its oil exports. Tankers from other nations are also expected to resume passage through the Strait of Hormuz once the agreement takes effect, although shipping companies remain cautious about its long-term durability. Additional supplies from the region are expected to replenish refinery inventories globally, alongside higher OPEC+ export quotas and increased output from the UAE, which left the cartel during the conflict. Meanwhile, industry data showed that US crude inventories declined by 8.3 million barrels last week.
2026-06-17