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Oil prices crash to $72 a barrel from $120 wartime peak
The price of brent crude dropped to $72 per barrel on Thursday after peaking at about $120 in the wake of the US-Israeli war with Iran, which began late February.
Brent crude futures for August delivery fell to $72.68 a barrel by 0639 GMT. It had earlier fallen from $76.75 per barrel on Tuesday to $73.50 on Wednesday.
The development marks a sharp drop to pre-war levels as tensions in the Middle East ease gradually.
The rise in supplies from the Middle East alongside a reprieve to Iran by the US, drove down prices of crude oil cargoes globally.
There is optimism that the US-Iran agreement would help keep the Strait of Hormuz open, a strategic waterway for commercial vessels, as the Strait had witnessed increased shipping traffic in recent days.
The US-Iran deal last week placed a halt on the Middle Eastern conflict that began February 28, allowing vessels to resume oil shipments through the Strait.
The agreement between the US and Iran allowed 60 days of negotiations to tackle germane issues such as Iran’s nuclear programme.
Oman also opened temporary routes on Wednesday to ease tanker departures from the strait, with movements coordinated by the International Maritime Organization and Omani authorities.
The US president Donald Trump, on Tuesday, wrote on Truth Social that 19 million barrels of oil flowed out of the Strait of Hormuz on Monday, adding that oil prices are dropping as a result of the free flow of oil through the Strait.
“19 million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling down, and the world is a much safer place,” Trump said.
