Global oil prices have dropped to their lowest levels since before the conflict involving Iran, as shipping activity through the strategically important Strait of Hormuz continues to recover following recent diplomatic developments.
Brent crude, the international benchmark for oil prices, briefly fell below $72.48 per barrel before recovering slightly to trade around $72.63. The decline erased gains that followed military action involving the United States, Israel and Iran earlier this year, when fears over energy supplies pushed prices sharply higher.
The oil market has experienced significant volatility in recent months. Concerns intensified after Iran responded to military strikes by effectively restricting access through the Strait of Hormuz, one of the world’s most important energy transit routes. The waterway handles a large share of global oil and liquefied natural gas shipments, making any disruption a major concern for energy markets.
Prices have moved steadily lower since the United States and Iran signed a memorandum of understanding on June 17. The agreement established a 60-day period for negotiations covering Iran’s nuclear programme and broader efforts aimed at ending hostilities.
The diplomatic breakthrough was followed by talks in Switzerland last weekend, where representatives from both countries met to discuss steps toward a longer-term settlement. The discussions resulted in the United States easing some sanctions on Iranian oil exports, helping to improve market sentiment.
Maritime traffic through the Strait of Hormuz has increased noticeably since the agreement was signed. Maritime intelligence company Kpler reported that vessels carrying crude oil, liquefied natural gas, fertiliser and other goods have resumed using the route in greater numbers.
Qatar and Pakistan, acting as mediators, said the United States and Iran had established a communication channel designed to prevent misunderstandings and support the safe passage of commercial vessels through the strait.
Dimitris Maniatis, chief executive of maritime risk advisory firm Marisks, said there had been a substantial increase in vessel movements through the waterway. His company estimates that around 80 ships have crossed the strait since Monday following the first round of peace talks.
While shipping activity is improving, it remains below pre-conflict levels, when more than 100 vessels passed through the route each day. Industry observers note that hundreds of ships are still waiting in Gulf waters.
The decline in crude prices has begun to affect fuel markets. In the United States, average gasoline prices have eased to about $3.93 per gallon after reaching $4 per gallon in April, although prices remain above levels seen before the conflict.
US President Donald Trump has ordered an investigation into major energy companies, including ExxonMobil and Shell, accusing them of failing to pass on lower oil costs to consumers. Industry representatives responded by saying fuel prices do not move in direct proportion to changes in crude oil prices.
Similar concerns have been raised in Britain, although regulators recently said there was no widespread evidence of excessive fuel pricing following the conflict.
