Global oil prices have dropped to their lowest levels since before the Iran war began, as improving crude supplies from the Middle East eased fears of prolonged disruptions to global energy markets.
Brent crude futures for August delivery fell 1.4% to $72.68 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 1.1% to $69.58. Both benchmarks reached their lowest levels since February 27, the day before the conflict began.
The decline follows signs that oil shipments through the Strait of Hormuz are returning to near-normal levels after the U.S.-Iran ceasefire framework reduced concerns over supply disruptions. U.S. Energy Secretary Chris Wright said at least 20 million barrels of oil passed through the strategic waterway over the past 24 hours, although full normalization could still take several weeks due to ongoing mine-clearing operations.
Additional downward pressure on prices came from expectations that Iran will increase crude exports following a temporary easing of U.S. sanctions, adding to global supply.
The recovery in tanker traffic has also been supported by temporary shipping routes opened by Oman to ease congestion around the Strait of Hormuz. However, Iran’s Revolutionary Guards warned vessels against using the waterway without authorization and said ships violating its directives would face action.
Markets are now closely watching the 60-day negotiation period established under the ceasefire framework, which aims to address broader issues, including Iran’s nuclear program. While lower oil prices have eased immediate concerns over inflation and fuel costs, traders remain alert to any developments that could disrupt supplies again.
