SINGAPORE / RankWire.AI / – Oil prices extended their decline on Wednesday, deepening a selloff that pushed both major benchmarks to three-week lows. Brent crude futures fell 92 cents, or 1.2%, to $78.44 a barrel by 3:30 a.m. GMT. U.S. West Texas Intermediate futures dropped $1.07, or 1.4%, to $74.70. Brent had fallen more than 12% for the week. WTI had lost more than 11% over the same period.
Oil prices extend weekly losses as Brent and WTI trade near three-week lows.
The latest slide followed a sharp Tuesday retreat that exceeded the 4% decline reported earlier in the session. Brent settled 5.3% lower at $79.36 a barrel, its first close below $80 since July 13. WTI settled 5.7% lower at $75.77. Both contracts reached their lowest closing levels in three weeks. The Tuesday losses extended Monday’s drop, when Brent fell 7% and WTI declined 5.1%.
Market attention centered on efforts involving Qatar, Iran and the United States to end the Iran war and restore shipping through the Strait of Hormuz. Qatar said mediators had made progress. Its emir also spoke with U.S. President Donald Trump about narrowing differences between Washington and Tehran. Iran rejected Trump’s statement that direct talks were underway. Tehran said no meetings had been scheduled, and no completed agreement had been announced by Wednesday morning.
Brent crude falls below $80
The Strait of Hormuz remains central to global energy trade. Before the war, about 20% of global oil and liquefied natural gas shipments passed through the waterway. Disrupted traffic helped drive sharp swings in crude prices during recent months. Brent traded between $72 and $102 during July. Wednesday’s decline placed the benchmark near the lower end of that range. Shipping through the strait had not returned to normal levels by early Wednesday.
Iran and Oman were also working on a plan connected to reopening the strait. Public statements linked that process to separate action involving the U.S. blockade of Iranian ports. No final reopening arrangement had taken effect by Wednesday morning. Oil markets continued to record large daily moves during the diplomatic activity. Brent had climbed above $100 in July before retreating below $80. WTI recorded a similar reversal as Gulf shipping conditions changed.
U.S. inventory data due Wednesday
The U.S. Energy Information Administration planned to release its weekly petroleum inventory report at 10:30 a.m. Eastern time Wednesday. The report covers U.S. crude oil, gasoline and distillate stocks. It also includes production, imports and refinery activity. Market participants use those figures to measure supply and demand in the world’s largest oil-consuming economy. The official release had not appeared during early Asian trading, so Wednesday’s quoted prices preceded the government’s latest inventory totals.
The agency’s July energy outlook forecast Brent at an average $74 a barrel during the third quarter of 2026. It also projected U.S. crude production at 13.8 million barrels per day for the year. The outlook cited higher expected oil supply and smaller global inventory draws than in its previous forecast. It estimated that global inventories would fall by 2.2 million barrels per day during the third quarter. Wednesday’s market level kept Brent above that quarterly forecast despite the steep three-session decline.