Oil slips below $80 on Iran supply hopes

June 17, 2026 (MLN): Falling crude oil prices, driven by expectations that Iranian petroleum exports could return to global markets, showed potential relief for inflation and pulled government bond yields lower on Wednesday, while equity markets and currencies held relatively steady as investors awaited the first Federal Reserve policy meeting under newly appointed chair Kevin Warsh.

Currently, Brent crude futures is down by $0.15, or 0.19%, to $78.81 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.75, or 0.99%, to $75.30 per barrel by [11:42 am] PST.

Brent crude futures slid beneath the $80-per-barrel mark, extending a decline of more than one-third from recent highs, after media reports indicated the United States intends to waive sanctions on Iranian oil as part of a broader agreement to end the ongoing conflict, according to Reuters.

The anticipated increase in supply compounded optimism surrounding the potential restoration of Middle Eastern energy exports, lending support to a global bond rally and driving U.S.

Treasury yields lower even as hostilities have significantly drawn down strategic petroleum reserves. A three-month blockade of the Strait of Hormuz has left U.S. oil stockpiles at their lowest level since 1983.

In sovereign debt markets, ten-year Japanese yields eased four basis points to 2.61%, while equivalent Australian yields shed nearly six basis points to settle at 4.78%.

The U.S.-Iran accord, expected to be formally signed on Friday, has yet to be confirmed in detail by either government.

Equity market moves were modest across the board. Wall Street futures edged slightly higher during Asian trading hours, whereas FTSE and European futures each slipped around 0.2%.

Chipmaker-heavy bourses in Tokyo and Seoul shrugged off overnight losses in U.S. semiconductor stocks, though a 1.7% decline in shares of Taiwan's TSMC weighed on the island's benchmark index, which fell approximately 1%.

The MSCI Asia-Pacific index excluding Japan was broadly unchanged, while Chinese equities saw artificial intelligence-related gains offset by weakness in consumer stocks following softer-than-expected retail sales figures.

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