FX.co ★ Oil Sinks Toward Pre-War Levels

Crude oil prices fell below $70 a barrel on Thursday, extending losses for a fourth straight session and nearly erasing all gains made since the outbreak of the Middle East conflict. The decline comes as progress in US-Iran peace talks has brightened the outlook for global supply.

Growing confidence in a durable agreement has encouraged more tankers to transit the Strait of Hormuz with their tracking signals switched on. Saudi Arabian tankers are heading toward the Ras Tanura terminal to resume Persian Gulf exports for the first time since March.

Supply is set to increase further under a temporary US waiver that allows purchases of already-loaded Iranian crude. With oil now moving through the waterway at its fastest pace since the conflict began, market focus is shifting toward a projected global supply surplus in 2026. In response, Iraq has threatened to exit OPEC unless it is granted a higher production quota.

At the same time, US crude inventories at Cushing, Oklahoma, remain tight, hovering near operational minimums at about 19 million barrels.