Oil prices decline
Global oil prices fell to pre-war levels as concerns over months-long conflicts in the Middle East eased and shipments in the Strait of Hormuz regained momentum.
Brent crude futures, which had risen to $76.76 a barrel the previous day, closed at $73.87. As of 12:06 today, the price of Brent crude fell approximately 1.4% from the close to $72.83 per barrel. In the same minutes, West Texas Intermediate (WTI) crude was trading at $69.19 per barrel.
Approaching pre-war closing level
Brent crude had closed at $72.48 per barrel on the last trading day before the US/Israel-Iran war began on February 28. The current level is just 35 cents above that close.
Brent crude, which accelerated its rise during the period of heightened concerns over the war's impact on energy supply, saw its highest close at $118.35 per barrel on March 31.
The surge to the peak was influenced by threats from U.S. President Donald Trump that if no deal was reached with Iran, they would target Khark Island, power plants, and oil wells in the Persian Gulf.
Traffic increases in the Strait of Hormuz
Brent crude, which rose above $100 due to supply disruption fears during the intense period of conflict, has recorded a sharp decline in recent weeks as concerns over a potential closure of the Strait of Hormuz diminished. Prices, which were around $97 at the beginning of June, largely gave back their wartime gains with an accelerated decline from mid-month.
In the markets, the renewed increase in tanker traffic through the strait and the normalization of oil flow in the region have reduced concerns about supply security, while investors have withdrawn the geopolitical risk premium they had factored into prices.
U.S. Energy Secretary Chris Wright stated at the Reuters Global Energy Forum that approximately 72 ships and 20 million barrels of oil had passed through the Strait of Hormuz in the last 24 hours.
What do analysts say?
Analysts point to the reduced risk of supply disruptions, expectations that more Iranian oil could return to global markets, and the easing of war-related uncertainties as the main reasons behind the recent decline in the oil market.
Experts note that despite the price drop, the market remains sensitive to geopolitical developments. It is stated that a renewed disruption of flow in the Strait of Hormuz or a potential deterioration in the diplomatic process could cause new fluctuations in oil prices.
Technically, $71.95 could be monitored as a support level for Brent crude, while $73.87 is seen as a resistance zone.
