An oil tanker and cargo ship remain anchored off the coast of Port Sultan Qaboos in Muscat, Oman, on June 21, 2026. The Strait of Hormuz, a key shipping route for oil and gas in the region, has been effectively closed since war broke out between the United States and Iran in late February. On Sunday, U.S. Vice President J.D. Vance arrived in Switzerland for high-level talks with an Iranian delegation as the two countries seek to clarify terms for ending the war.
Elke Scoliers | Getty Images News | Getty Images
Oil prices on Thursday erased wartime gains as investors bet that global oil supplies would improve after tankers stranded for months in the Persian Gulf began leaving the Strait of Hormuz.
U.S. crude oil for August delivery fell 1.66% to about $69 a barrel, and Brent crude fell 1.79% to less than $73 a barrel, hovering at levels seen before the Middle East war erupted in late February.
More than 20 tankers carrying about 35 million barrels of crude oil have passed through the Strait of Hormuz since the U.S. and Iran agreed to reopen key shipping lanes, according to trade tracking firm Kupler.
Non-Iranian ships have been stuck in the Persian Gulf for more than three months after Tehran effectively shut down the waterway early in the conflict. The majority are expected to arrive at destinations in Asia by early August.
Citi said the worst may be behind its commodity curve-carry strategy, which suffered during the U.S.-Iran war when a spike in front-end oil prices hurt short-term contracts to buy long-term contracts.
The bank said its current base case is for significant easing, expecting Brent crude to fall to $60-$65 a barrel over the next six to 12 months as flows in the Strait of Hormuz normalize, adding that the temporary summer oil price rise should “calm down.”
However, Iran’s Islamic Revolutionary Guard Corps Navy warned on Thursday that safe passage through the Strait of Hormuz would only be allowed via routes designated by Tehran, stressing that risks to key shipping routes remained. The IRGC also added that vessels violating the passage instructions “will face action.”
—CNBC’s Spencer Kimball contributed to this report.
