U.S. Energy Secretary Chris Wright said on Wednesday that oil flows through the Strait of Hormuz had almost returned to levels seen before the Iran war began. Speaking at a forum, he said at least 20 million barrels had passed through the strait in the previous 24 hours. However, he noted that a full return to normal operations could take a few weeks as demining work in the area continues.
Crude oil price on June 25
Brent crude has slipped below $73 a barrel for the first time since February 27, 2026. It had hit a high of $126 per barrel on April 30 and is down 42% from those levels.
Brent crude futures for August delivery fell 1.40 cents, or 2%, to $72.40 a barrel, while U.S. West Texas Intermediate crude declined 1.2 cents, or 1.6%, to $69 a barrel. Brent had dropped more than $3 on Wednesday as worries over supply disruptions faded, while WTI settled nearly $3 lower.
The initial agreement reached last week to end the U.S.-Israeli war with Iran, which started on February 28, has enabled shipping traffic through the strait to resume. The deal provides for a 60-day negotiation period aimed at addressing more complex issues, including Iran’s nuclear programme. Wright said oil shipments would continue through the strait even if the agreement were to break down, adding that Iran would not be able to shut the waterway again.
Separately, Oman on Wednesday introduced temporary routes to facilitate tanker movements out of the Strait of Hormuz, with the International Maritime Organization and Omani authorities coordinating vessel traffic. Qatar’s prime minister also visited Oman for discussions on launching negotiations involving Iran, Iraq and Gulf states on the future management of the strait.
What’s next for prices?
Despite the recent slide in oil prices, a complete reopening of Hormuz is expected to be a complex process. It will require careful coordination of vessel movements, restarting oil wells, repairing infrastructure, and agreeing on de-mining operations. Some shipowners also remain wary of operating conditions in the strait and the wider Persian Gulf.Analysts note that global oil inventories were depleted during the extended disruption of shipping through the Strait of Hormuz and will take time to rebuild. Stockpiles could continue falling before fresh Gulf supplies begin reaching international markets.Read more: NSE and Ambani are about to see if India’s retail crowd still has ‘buy the dip’ energy left
Last month, Saudi Aramco Chief Executive Officer Amin Nasser cautioned that disruptions in the Strait of Hormuz could delay a return to stability in global oil markets until 2027. According to Nasser, prolonged interruptions could affect nearly 100 million barrels of oil supply each week. Saudi Aramco remains the world’s largest oil producer.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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