Oil expanded its losses on Wednesday, as concerns about potential disruptions in supply were eased, while investors monitored developments in strategic importance Straits of Hormuz.
Futures of the international Brent benchmark for August retreated by 3.05% to $74.73 per barrel, recording the lowest level than before the start of air raids launched by the US and Israel against Iran on 28 February.
Futures of the American West Texas Intermediate (WTI) for August some 3% lower, at $71.02 per barrel.
US President Donald Trump criticised oil companies on Wednesday for not reducing petrol prices according to the recent fall in crude oil prices.
«Large oil companies do not reduce their prices in pumps according to the significant price drop they pay for oil. These prices fall like stone!», Trump wrote in his post on Truth Social.
«In other words, customers suffer from "assurance". I've ordered the Justice Department to begin to examine the matter immediately. Gas prices must start to fall much faster than I see!», add.
Investors were also encouraged by indications that maritime traffic through the Straits of Hormuz could begin to return to normality.
More than 11,000 sailors trapped in the Persian Gulf will start leaving through the Straits of Hormuz, after security guarantees were secured, according to the International Maritime Organization.
Under $4,000 per ounce of gold
At the same time gold prices declined below the psychological limit of $4,000 per ounce, as the dollar was boosted and expectations of maintaining interest rates at high levels increased. Of course, soon after they overcame it again close to $4,050 per ounce.
Gold spot values retreated below the significant psychological limit of $4,000 per ounce for the first time since November 2025 on Wednesday, under the pressure of a stronger American dollar and rising expectations that interest rates will remain high.
The American dollar was strengthened, making it gold, which is priced in dollars, more expensive for holders of other currencies.
Investors have increased their stakes for increases in American interest rates this year, following the strict tone adopted by the American central bank at its last monetary policy meeting, while concerns about inflationary pressures resulting from the war with Iran remained.
«The market has been discounting interest rates since September due to Fed's strict stance, while the dollar has been launched to high 13 months. Combined with the lowest inflation expectations, these exert strong pressure on precious metals», stated independent metal dealer Tai Wong.
«For gold there is support just under $3,900 and markets from central banks continue, so a collapse is unlikely. However, a potentially long period of accumulation is expected, as investment interest in gold has now subsided», add.
Gold becomes less attractive to investors when interest rates increase, as it does not offer return.
The gold spot price, which had recorded a historic high at $5,594,82 in late January, has since retreated by more than $1,500 per ounce.
ING analysts revised their predictions for gold downwards, now estimating that prices would be averaged at $4,300 per ounce in the third quarter of 2026 and at $4,600 in the fourth quarter, versus previous forecasts for $4,850 and $5,000 respectively.
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