Global oil prices have fallen back to levels seen before the Iran conflict, as expectations of increased crude supply from the Middle East eased market concerns over demand and shipping disruptions.
According to Al Jazeera, Brent crude futures for August delivery dropped by $1.06, or 1.44 percent, to $72.68 per barrel on Thursday morning (GMT), while U.S. West Texas Intermediate (WTI) fell by 76 cents, or 1.08 percent, to $69.58 per barrel. These mark the lowest levels for both benchmarks since February 27.
Market analysts say the decline reflects growing confidence in short-term oil availability. September contracts are currently trading at a higher price than August contracts, indicating ample immediate supply.
The drop follows a sharp fall on Wednesday, when Brent crude lost more than $3 and WTI also declined by nearly $3 amid reduced fears over supply shortages.
U.S. Energy Secretary Chris Wright said oil shipments through the Strait of Hormuz have nearly returned to pre-war levels, with around 20 million barrels transported in the past 24 hours. However, he noted that it may take several more weeks to fully normalize the route as mine-clearing operations continue.
Meanwhile, Iran is preparing to increase oil exports after receiving temporary sanctions relief from the United States. The move, along with rising regional supply, has contributed to the drop in global crude prices.
Last week, a preliminary agreement aimed at ending the conflict between Iran, the U.S., and Israel helped reopen shipping routes through the Strait of Hormuz. The deal includes a 60-day negotiation period to address complex issues such as Iran’s nuclear program.
Iran has also announced plans to impose naval service fees on vessels passing through the strait, a proposal opposed by Washington, which insists the waterway remains an international passage.
To facilitate safer tanker movement, Oman has opened temporary alternative routes, coordinated jointly with the International Maritime Organization (IMO). However, Iran’s Revolutionary Guard has warned vessels against using the routes without permission, raising concerns over further tensions in the strategic waterway.
