Oil prices hit lowest levels since March as Iran receives 60-day US license
Brent and WTI decline as Iranian exports return to open market and Hormuz navigation resumes
West Texas Intermediate fell to approximately $72 per barrel on Wednesday. Brent crude touched $77 per barrel. These are the lowest prices since early March. Brent is down approximately 40% from an April peak of $126 per barrel.
Washington granted Iran a 60-day license to sell oil internationally. Iran previously used a “shadow fleet” of tankers with disabled tracking systems to sell discounted crude to Chinese refineries. This followed the 2018 U.S. withdrawal from the nuclear deal.
Navigation is resuming through the Strait of Hormuz. Exports from Iraq and Kuwait are returning to the market. Saudi Arabia and the United Arab Emirates used alternative pipelines to bypass the strait. Kpler data shows 118 tankers in the Gulf can exit the strait within 10 to 15 days.
Ukrainian strikes on Russian refineries have affected refining capacity. These strikes have not changed crude export volumes.
JPMorgan lowered its Brent price forecast from $86 per barrel to $78 per barrel by the end of 2026. The bank cited lower demand and market rebalancing. It stated global production may require cuts in early 2027 to manage a projected supply surplus.
