Oil prices fall as Hormuz tanker flows resume, 2026

Oil retreats even after vessel hit near Oman

Oil prices fell on June 26, extending a sharp retreat as traders weighed improving crude flows through the Strait of Hormuz against renewed security risks after a vessel was struck near Oman. The market reaction was notable because headlines around the projectile strike initially lifted futures, but the broader focus quickly returned to physical flows and the clearing of a tanker backlog. Brent and WTI were both described as heading for steep weekly losses, reflecting how quickly the risk premium built during the U.S.-Israeli conflict with Iran has started to unwind. Reports said a Singapore-flagged cargo vessel was hit by an unknown projectile on June 25, underscoring that the operating environment for shipping remains fragile. Still, multiple updates pointed to rising shipments and more tankers exiting the strait. That combination left prices moving lower despite persistent geopolitical uncertainty.

Where prices traded on June 26

Early on Friday, Brent crude futures were reported down 19 cents, or 0.25%, at $15.07 a barrel as of 0055 GMT, while U.S. West Texas Intermediate was down 13 cents, or 0.18%, at $11.79. Later pricing cited a steeper decline: Brent slid 3.47% to $12.65 a barrel at 10.37am GMT, while WTI fell 3.42% to $19.46. The mixed snapshots highlight how fast prices were moving as traders processed shipping and supply updates across the session. Another datapoint in the coverage said Brent dropped to a low of $12.24 on Thursday, slightly below the level recorded the day before missile strikes launched by the U.S. and Israel against Tehran on February 28. The same reporting noted Brent crude for August delivery trading below September, with September priced at $13.59, a structure typically associated with adequate near-term supply.

Weekly losses deepen as supply fears ease

The tone across the reports was that easing supply concerns drove the week’s price action. One update said Brent and WTI were set for losses of close to 7% for the week, while another said they were headed for losses of around 9%. Either way, the direction was clear: the market was marking down the probability of prolonged disruptions as tanker movements picked up. Susannah Streeter, chief investment strategist at Wealth Club, was quoted saying concerns about a prolonged global energy crisis caused by the Iran conflict were dissipating, with oil prices retreating toward pre-crisis figures. Another comment said the decline in oil prices helped ease fears about a potential inflationary surge. The pullback also came after a period in which, according to one report, prices had declined by over 20% during the month.

Strait of Hormuz flows and the backlog problem

A central driver of the sell-off was evidence that crude shipments through the Strait of Hormuz rose this week to their highest level since the U.S.-Israeli conflict with Iran began in February, after a ceasefire deal reopened the waterway. Vessel traffic in the strait was also reported to have doubled in the last 24 hours, reaching its highest point since late February, based on CNN and MarineTraffic data cited in the coverage. However, the same reports stressed that overall traffic remained a fraction of the daily average of 125 ships passing through the strait before the February 28 conflict began. That detail matters because it suggests the recovery is meaningful but incomplete, keeping traders sensitive to any renewed disruption. June Goh, senior oil market analyst at Sparta Commodities, linked the general sell-off to increased flows exiting the Strait of Hormuz and China not yet picking up crude demand.

Vessel attack reopens shipping risk questions

The market’s brief rebound on June 25 came after the cargo vessel was hit near Oman, showing how quickly risk can re-price. Two U.S. officials told Reuters that Iran fired on the cargo ship as it attempted to pass through the strait. Iranian authorities said the security of vessels passing outside designated Hormuz routes is not guaranteed. The U.N.’s shipping agency suspended its voluntary evacuation scheme following the incident, according to the reports. Another update said the International Maritime Organisation suspended its evacuation plan for stranded ships, likely slowing traffic even as flows recover. IG analyst Tony Sycamore said that with the geopolitical risk premium creeping back into prices, markets would watch whether tanker traffic resumes or whether the latest hurdles force producers to tap the brakes on planned production increases.

Aramco loading resumes at Ras Tanura

On the supply side, a notable operational update came from Saudi Arabia. Refining giant Saudi Aramco resumed oil loading on June 26 at its Ras Tanura terminal in the Gulf after a near four-month halt, shipping data from LSEG showed. The restart added to the broader narrative of normalization in the region’s oil logistics after the ceasefire. While the reports did not quantify volumes from Ras Tanura for the day, the timing reinforced the idea that key export infrastructure is returning to operation. In a market already focused on the rise in shipments through Hormuz, that kind of signal can amplify the downside move in prices.

Other supply risks: Venezuela earthquakes and power issues

Not all supply headlines pointed toward easing constraints. The coverage said earthquakes in Venezuela on Thursday raised supply concerns. It added that a lack of power has cast doubt on whether oil output can be sustained at its pre-earthquake level of close to 1.2 million barrels per day, according to sources. This created a counterweight to the more dominant narrative around Hormuz flows. Still, the price action suggested traders treated Venezuela’s situation as a risk to monitor rather than a confirmed, immediate disruption large enough to offset improving Middle East logistics.

U.S. inventory snapshot adds another input

Separate data mentioned in the article noted U.S. commercial crude oil stocks fell by 6.1 million barrels for a ninth consecutive decline, while gasoline and distillate fuel stocks posted increases. The inventory mix can matter for price direction because falling crude stocks may be supportive, while rising product inventories can signal softer near-term demand or refinery dynamics. In this session, however, the market’s center of gravity remained the shipping picture in the Persian Gulf.

Key facts at a glance

Market impact and why the move matters

The session showed that, for now, incremental improvements in physical flows through Hormuz are carrying more weight than single-event security shocks. The vessel strike and the suspension of maritime evacuation plans highlighted operational risks, but the market appeared to interpret the reopening of the waterway and the exit of stranded tankers as the dominant factor for near-term supply. The reported August-September price structure, with September at $13.59 and August trading cheaper, added to the message that immediate supply constraints may be loosening. At the same time, commentary pointing to weaker demand from China and to strategic inventory releases in the reporting helped explain why prices could fall even with geopolitical risk still present.

Conclusion

Oil prices fell on June 26 as the market leaned toward a recovery in Strait of Hormuz flows, even after a cargo vessel was hit near Oman and officials cited Iranian involvement. The next key signals will come from whether shipping traffic continues to normalize, how long the ceasefire holds, and whether operational updates like Ras Tanura’s resumed loading translate into sustained higher export activity.