Oil price falls to pre-Iran war levels as more tankers exit strait of Hormuz
Summary
Oil prices have dropped to levels last seen before the conflict between Iran and the US began in February. More oil tankers are now safely passing through the strait of Hormuz, increasing supply and reducing fears of a lasting energy shortage.Key Facts
- Brent crude oil price fell to $72.24 a barrel, below pre-Iran war levels.
- Oil prices dropped over 20% in the past month.
- More tankers are transiting the strait of Hormuz with tracking signals turned on, indicating increased safe passage.
- The strait of Hormuz saw vessel traffic double to the highest level since February.
- A new shipping route near Oman is being used despite threats from Iran’s paramilitary forces.
- The US and Iran signed a 60-day interim agreement to negotiate a permanent peace deal.
- Oil supply increased partly due to inventory releases and reduced demand from China.
- European energy prices remain high due to a heatwave causing increased electricity use.
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