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U.S.-Iran Deal Resumes: Brent and WTI Slide
Tankers resume passage through the Strait of Hormuz after U.S.-Iran peace talks. Brent tests $78 support; WTI eyes the $66-74 zone. Traders watch traffic flow and SPR levels for the next move.
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Brent crude fell to $78.80 a barrel on Tuesday. WTI slipped below $74.30. The move came after the U.S. and Iran resumed peace talks. Tankers began moving through the Strait of Hormuz again on Monday, though traffic has not returned to normal levels.
The peace talks remove a portion of the war premium built up during the conflict. The key uncertainty is whether the agreement holds and whether the Strait of Hormuz will see sustained, unrestricted shipping. Traders are watching daily tanker counts for confirmation. A return to normal flow would eliminate the remaining risk premium. A breakdown in talks or renewed blockages would rebuild it.
Strait of Hormuz Traffic and the Risk Premium
WTI crude has broken below $80 a barrel, a level that now marks resistance. The daily chart shows a descending channel from September 2023 highs, with support in the $66 to $74 zone. The RSI has dipped into oversold territory for the first time since December 2024, which historically precedes at least a consolidation phase. On the 4-hour chart, the breakdown from the March 2026 consolidation range between $80 and $120 confirms the bearish shift. Immediate support is the $66-74 region. A break below $66 opens the path to $60.