Oil prices extended losses on Tuesday, June 16, 2026, as markets weighed prospects for resumption of supply through the key Strait of Hormuz against and a lack of details from a preliminary deal to end the Iran war.
By 0436 GMT, Brent crude futures fell 25 cents, or 0.3%, to $82.92 a barrel, while U.S. West Texas Intermediate inched down 9 cents, or 0.1%, to $80.66 a barrel.
On Monday, oil prices fell nearly 5% to their lowest close since March 4, after United States President Donald Trump said a memorandum of understanding was signed to end the U.S.-Israeli war with Iran, though full details have not been made public.
The hostilities led to the closure of the Strait of Hormuz that typically carried one-fifth of the world’s oil supply before the conflict.
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Some analysts expect a resumption of supply soon via the Strait, with other factors weighing down physical market prices.
Morgan Stanley analysts said in a client note: “From here, it likely takes several weeks for tanker flow to be restored.
“We see 50% of production back by September, and 80% by December, slightly faster than before.”
A broad range of indicators had signalled weakness in physical oil markets in recent weeks, they added.
“High U.S. exports and low China imports are the key drivers (and) in the short term (i.e. next weeks) they do not seem to come to an end just yet,” Stanley added.
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