WTI crude fell 1.3% to $68.58 a barrel, while Brent slipped 1.9% to $71.57.
The decline follows progress in Iran‑US negotiations and a gradual return of tanker traffic through the Strait of Hormuz. Market expectations are shifting from a supply‑shortage scenario to one of global oversupply.
Brent futures remain in contango, a sign that traders are wary of excess supply. Goldman Sachs forecasts normal passage through the Hormuz by the end of July and predicts a global oversupply of about 2 million barrels per day by 2027. Morgan Stanley has warned of a growing oversupply and cut its oil price outlook.
Since the easing of U.S. sanctions, Iran has shipped over 40 million barrels, and Russian exports have reached record levels. Despite improved passage, tanker traffic through the Hormuz remains below pre‑war levels, and geopolitical risks continue to loom.