Crude prices stabilized on Tuesday but both benchmarks were headed for their biggest monthly losses since 2020 as tanker traffic via Strait of Hormuz resumes.
Front-month West Texas Intermediate crude futures advanced by 0.5% to $71.05 per barrel and lost over 18% on a monthly basis in June, while Brent futures edged higher by 0.3% to $73.35/bbl but lost more than 20% month-over-month so far.
On a quarterly basis, the supply-side correction forced a 29% decline for WTI and a steep 38% plunge for Brent.
The bearish trigger for the market has been the rapid pick-up in commercial tanker traffic navigating the Strait of Hormuz, analysts noted.
While the clearing of maritime channels has significantly alleviated global supply deficit anxieties, midstream risk has not entirely evaporated.
Analysts at Commerzbank warned that "The renewed attacks on the weekend show that the situation in the Strait of Hormuz remains unstable."
On the geopolitical front, a spokesman for Qatar's Foreign Ministry reportedly clarified that despite the arrival of high-profile US envoys Jared Kushner and Steve Witkoff to deliberate with local mediators, no direct or high-level meetings between American and Iranian representatives are scheduled this week.
Domestically, US Donald Trump issued a firm directive via Truth Social on Monday, ordering gasoline retailers to immediately cut retail pump prices toward a $2.50 per gallon target.