Oil drops toward pre-conflict levels amid improving market outlook

Crude oil prices continued to decline on Wednesday as progress in US-Iran peace negotiations improved the global supply outlook and encouraged the resumption of tanker traffic through the Strait of Hormuz. Brent crude slipped 1.2% to $76.08 per barrel, WTI declined 1.2% to $72.31 per barrel, while MCX July crude oil futures dropped 1.6% to Rs 6,852 per barrel. Oil prices also faced pressure from a stronger US dollar, with the dollar index hovering near 101.3, its highest level in more than a year, amid persistent expectations of Federal Reserve rate hikes. Investors are now awaiting the upcoming US PCE inflation report for further clues on the Fed's policy path. As geopolitical tensions ease and energy market disruptions fade, crude prices have fallen more than one-third from their conflict-driven peaks.

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