🛢️ Global Oil Prices Drop Over 1% Amid Strait of Hormuz Progress

Global oil prices fell by over 1% on Tuesday, extending Monday's 3% decline, driven by signs of diplomatic progress and reviving crude flows through the strategic Strait of Hormuz following U.S.-Iran peace talks. • Price Adjustments: Brent crude futures dropped 1.4% (down $1.09) to $76.81 a barrel, while U.S. West Texas Intermediate (WTI) fell 1.2% (down 87 cents) to $72.99 a barrel. • Supply & Shipping: Tanker traffic is picking up. Two crude tankers carrying nearly 2 million barrels sailed through the Strait of Hormuz on Monday after the U.S. granted Iran a 60-day sanctions waiver. • U.S. Inventories: Government data revealed that U.S. Strategic Petroleum Reserve (SPR) stocks fell to 331.2 million barrels last week—the lowest level since June 1983—following recent U.S.-Iran conflict disruptions. • Economic Context for Sri Lanka: While this specific text does not detail domestic impacts, a sustained drop in global oil benchmarks is typically a vital driver for lowering Sri Lanka's national import bill, easing foreign exchange pressure, and stabilizing local fuel pricing and production costs. _Note: Based on provisional market and ship-tracking data._