Oil slips 1% as Gulf shipping improves

• Oil prices fell over 1% as Brent crude dropped to $76.30 and WTI to $72.43 per barrel.
• Markets reacted to signs of improved tanker movement through the Strait of Hormuz amid easing geopolitical tensions.
• Analysts cited potential recovery in oil flows and U.S.–Iran diplomatic progress as key drivers of weaker prices.

Oil prices declined on Wednesday, with Brent crude falling 1% to $76.30 per barrel and West Texas Intermediate dropping 1.1% to $72.43, extending losses to multi-month lows.

The decline follows growing signals that more oil tankers are moving through the Strait of Hormuz, easing supply disruption concerns that had previously supported prices.

"Positive signals from the Persian Gulf are fuelling optimism about oil flows through the Strait of Hormuz," said ING commodity strategists in a note, pointing to increased vessel crossings despite levels remaining below pre-conflict conditions.

Prices were also pressured by easing geopolitical tensions, including a U.S. sanctions waiver for Iran and early-stage diplomatic engagement that markets view as supportive of higher oil exports.

Market participants are monitoring how quickly Middle Eastern oil exports recover, alongside uncertainty over the durability of U.S.–Iran nuclear discussions and maritime coordination agreements in the region.

U.S. crude inventories also fell by 765,000 barrels last week, according to market sources citing American Petroleum Institute data, though analysts had expected a much larger draw of about 4.5 million barrels.