World crude oil prices fell in the afternoon session of June 22 after the round of negotiations between the US and Iran in Switzerland ended, thereby easing concerns about global supply shortages.
The main driving force for the market to cool down was the announcement from Iran that it had achieved immunities for energy export activities.
Brent crude oil futures fell 1.68 USD, or 2.09%, to 78.89 USD/barrel at 1:33 PM Vietnam time. US light sweet crude oil (WTI) for July 2026 delivery fell 60 cents to 76 USD/barrel before the contract expired, while oil for August 2026 delivery also fell 69 cents to 75.16 USD/barrel.
Regarding the diplomatic process, senior US and Iranian officials concluded the first round of negotiations based on a memorandum to extend the current ceasefire by at least 60 days. Iran confirmed that it has ensured immunity measures for oil and petrochemical exports, opening up opportunities for normalizing trade.
Analysts believe that this diplomatic breakthrough may allow about 1.5 million barrels of Iranian crude oil per day to return to the international market. This additional supply will significantly improve the supply-demand picture in the context that consumption growth momentum is still at a moderate level.
On the ground, despite the risks of ceasefire violations causing ship traffic through the Hormuz Strait to fluctuate, energy officials confirmed that more than 25 million barrels of Iranian oil have crossed this route to enter the market. Expectations for clearing stranded shipments have caused oil prices to evaporate more than 8% last week.
Supply from the Middle East continues to increase as the United Arab Emirates (UAE), Kuwait and Iraq are offering more oil to customers. Iraqi officials have also just announced plans to gradually restore crude oil production to 4.2-4.3 million barrels per day in the near future.
