Summary

Oil prices fell for a second straight session, unwinding part of their war-driven surge as signs of diplomatic progress between the US and Iran cooled supply fears. Brent crude drifted toward $108 a barrel after tumbling 4% in the previous session, while West Texas Intermediate hovered near $100. The decline follows US President Donald Trump's claim that “great progress” had been made toward a final agreement to end the conflict, raising hopes that disruptions to global crude flows may eventually ease. Despite the optimism, the situation on the ground remains complex. Trump indicated that while US efforts to escort ships through the Strait of Hormuz would be paused, the broader naval blockade of Iranian ports would stay in place. That leaves the critical waterway operating under a dual constraint — with Tehran obstructing shipping and US forces limiting access to Iranian terminals — even as rhetoric around the conflict softens. Earlier, Secretary of State Marco Rubio declared that “Operation Epic Fury is concluded,” signalling the end of a key phase of US-Israel military action 66 days after it began. Defence Secretary Pete Hegseth also reinforced that a fragile truce remains intact, even as sporadic tensions persist in the region. The broader oil market remains tight despite the pullback in prices. Since the conflict began in late February, Brent has surged roughly 50%, reflecting the removal of hundreds of millions of barrels of Persian Gulf supply from global markets. The shutdown around the Strait of Hormuz continues to snarl shipping. According to US military officials, more than 1,550 commercial vessels — carrying around 22,000 sailors — remain stranded in the Persian Gulf, highlighting the scale of logistical disruption still at play. In the US, fresh industry data pointed to a sharp tightening in domestic supply. Crude inventories fell by 8.1 million barrels last week — potentially the steepest drop since mid-February if confirmed by official figures. That decline offers some underlying support to prices, even as geopolitical risk premiums begin to ease. Oil markets have been whipsawed by sharp swings since the outbreak of the conflict, pushing many traders to reduce exposure. Open interest in Brent has dropped to its lowest level since August, signalling caution amid extreme volatility. Adding to the shifting dynamics, Saudi Arabia has cut the price of its key crude grade for Asian buyers next month, stepping back from record highs seen in May — though prices remain elevated as supply disruptions linger. Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.