Global oil prices have dropped sharply to their lowest levels since the outbreak of the U.S.-Iran conflict, raising hopes of improved stability in the international energy market.
Brent crude fell to around $72 per barrel on Thursday after climbing above $120 per barrel during the height of the crisis, when fears over disruptions in the Strait of Hormuz sent energy prices soaring.
According to market data, Brent crude slipped to $72.68 per barrel, while U.S. West Texas Intermediate (WTI) dropped to $69.58 per barrel.
Analysts say the decline was driven by easing geopolitical tensions, increased oil supply from the Middle East, and expectations that Iran could boost exports following a temporary easing of U.S. sanctions.
The recent agreement between the United States and Iran, which paved the way for a 60-day negotiation period, has also helped restore confidence in global oil markets.
The resumption of shipping through the Strait of Hormuz, a key global oil transit route, has further eased fears of supply disruptions.
According to reports, Oman has introduced temporary shipping routes to improve tanker movements through the strategic waterway, while international authorities continue to monitor maritime traffic.
Reacting to the development, U.S. President Donald Trump said the record volume of oil passing through the Strait of Hormuz contributed to the sharp decline in prices.
“Nineteen million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling, and the world is a much safer place,” Trump said.
Market watchers, however, say oil prices will remain sensitive to developments in the Middle East as negotiations between the United States and Iran continue.
Source: Oilprice.com, CNN
