Crude Oil Prices Extend Decline Amid Easing Hormuz Tensions

Crude oil prices have declined for six consecutive sessions, reaching $89.12 a barrel for WTI crude and $98.29 for Brent crude on Wednesday.

The price drop is attributed to easing concerns around the Strait of Hormuz, which had previously contributed to a risk premium in oil prices.

Ashish Rajodiya, Head of Commodities at PL Capital, notes that Iran has submitted a diplomatic proposal to Washington, offering to reopen the Strait within seven days if the US eases military pressure and lifts its blockade on Iranian ports.

The supply-side picture has improved with Saudi Arabia's Aramco restarting its East-West pipeline at reduced capacity, while Red Sea crude exports have resumed from Yanbu.

However, actual traffic through the Strait of Hormuz remains below pre-conflict levels, despite improving shipments. Rajodiya describes this recovery as 'fragile', highlighting the gap between headlines and full shipping activity.