The price of Brent North Sea crude, the international benchmark, extended losses Wednesday to trade under $75 a barrel for the first time since the start of the Middle East war.
Brent slid 3.1 percent to $74.73, extending its fall since the United States and Iran last week struck a deal to end the conflict that began on February 28.
“While there are early encouraging signs of increased tanker activity, the market is pricing in the broader scenario of Iranian oil re-entering the global market and the Strait of Hormuz normalising,” said Tim Waterer, chief market analyst at KCM Trade.
“If sanctions are eased, Iranian production and exports could ramp up relatively quickly given the substantial amount stored on tankers — we are likely talking weeks rather than months,” Waterer added.
