Brent extends losses for fourth straight session amid easing supply disruption fears
Crude oil prices fell sharply on Tuesday, with Brent sliding more than 3% to hover near $80 per barrel as expectations of a US–Iran agreement improved the global supply outlook and extended a recent selloff.
The decline followed a 4.8% loss in the previous session, marking a fourth consecutive day of losses and pushing prices to their weakest level since early March.
Fourth Straight Day of Losses
Oil prices have now entered their longest losing streak of the year as investors reassess supply risks linked to the Middle East.
Market sentiment has shifted as optimism grows around a potential US–Iran agreement, easing earlier concerns about prolonged disruptions to global oil flows.
US–Iran Deal Expectations Pressure Prices
The selloff was driven by expectations that a possible deal between Washington and Tehran could lead to improved maritime conditions in the region, including the reopening of the Strait of Hormuz — a key global oil transit route.
An interim agreement is reportedly expected to be signed in Switzerland on Friday, although official confirmation and detailed terms have not yet been released.
Market participants remain cautious, noting uncertainty over implementation, maritime security arrangements and the extent of any reopening of the strategic waterway.
Supply Outlook Improves, But Risks Remain
Analysts said the prospect of improved diplomatic relations has eased fears of major supply disruptions, leading to downward pressure on crude prices.
However, they noted that previous disruptions have already tightened global inventories, with regional exports affected during the period of heightened tensions.
US emergency crude reserves have also fallen to their lowest level since 1983, underscoring limited buffer capacity in the global market.
Volatility Expected to Continue
Despite improving supply expectations, analysts warn that oil markets are likely to remain volatile until the terms of any agreement are fully clarified and implemented.
Traders are expected to closely monitor developments in US–Iran negotiations, global inventory data and geopolitical risks for further direction in prices.
For now, crude remains under pressure as markets price in a potential easing of one of the world’s most sensitive supply risk regions.
