Brent crude fell toward $78 per barrel on Wednesday, extending its losing streak to a fifth consecutive session and hitting its lowest level since early March. Prices remained under pressure as expectations of higher global supply grew ahead of a planned peace agreement between the United States and Iran. The two countries are set to sign an interim deal in Switzerland on Friday, which would grant Tehran broad economic incentives, including the immediate resumption of its oil exports.
Once the agreement takes effect, tankers from other countries are also expected to resume transiting the Strait of Hormuz, though many shipping firms remain cautious about the long-term stability of the accord. Additional flows from the region are projected to help rebuild refinery stocks worldwide, complementing higher OPEC+ export quotas and increased production from the United Arab Emirates, which exited the cartel during the conflict. At the same time, industry data showed that US crude inventories fell by 8.3 million barrels last week.
