Oil Extends Decline as Vance Says Strait of Hormuz Is Open, US-Iran Have Basis for Final Deal

Oil prices extended losses after US Vice President JD Vance said the Strait of Hormuz remained open and that Washington and Tehran had laid a strong foundation for a final agreement.

Walter Bloomberg, an overseas markets news feed, reported on June 22 that crude deepened its decline after Vance's remarks.

"The Strait of Hormuz is open," Vance said. He added that the US and Iran had established "a very good basis for a successful final agreement."

Markets interpreted Vance's comments as a sign of easing geopolitical risk in the Middle East. Expectations that shipping through the Strait of Hormuz will remain normal, together with the possibility of a follow-up agreement between the US and Iran, helped ease some concerns over crude supply.