- BIST10011,577-1.87%
- USD49.58+0.05%
- EUR55.62+0.09%
- GOLD4,131.80-0.44%
- INTEREST37.00%-1.00
- BITCOIN83,594-0.51%
- October 22, 202614°
- BIST10011,577-1.87%
- USD49.58+0.05%
- EUR55.62+0.09%
- GOLD4,131.80-0.44%
- INTEREST37.00%-1.00
- BITCOIN83,594-0.51%
- October 22, 202614°
Oil prices drop to pre-war levels as Strait of Hormuz shipments rise
Brent crude oil fell to $72.83 per barrel, while West Texas Intermediate (WTI) crude fell to $69.19. These levels match the closing prices before the US/Israel-Iran War, which started on February 28.
Oil prices fall
Global oil prices have fallen back to pre-war levels as concerns over months-long conflicts in the Middle East ease and shipments through the Strait of Hormuz pick up again.
Brent crude futures, which rose as high as $76.76 yesterday, settled the day at $73.87. As of 12:06 p.m. today, Brent had dropped about 1.4% from the close to $72.83, while West Texas Intermediate (WTI) crude traded at $69.19 per barrel.
Nears pre-war closing level
Brent had closed at $72.48 on the last trading day before the US/Israel-Iran War began on February 28. The current price is just 35 cents above that close.
Brent, which accelerated its rally amid growing fears over the war's impact on energy supplies, hit its highest close at $118.35 per barrel on March 31.
The price surge was driven by US President Donald Trump's threats to target Kharg Island, power plants and oil wells in the Persian Gulf if no deal was reached with Iran.
Traffic through Strait of Hormuz increases
Brent, which topped $100 during intense fighting on fears of supply disruptions, has tumbled in recent weeks as worries that the Strait of Hormuz could close eased. After trading around $97 in early June, it accelerated its slide from mid-month, erasing most of its wartime gains.
The return of tanker traffic through the strait and the normalization of oil flows in the region have eased supply security concerns, while investors have withdrawn the geopolitical risk premium they had priced in.
US Energy Secretary Chris Wright said at the Reuters Global Energy Forum that about 72 ships and 20 million barrels of oil passed through the Strait of Hormuz in the last 24 hours.
What analysts say
Analysts attribute the decline in oil prices in recent weeks primarily to the reduced risk of supply cuts, expectations that more Iranian oil could re-enter global markets, and the fading of war-induced uncertainties.
Despite the price decline, experts say the market remains sensitive to geopolitical developments. Any renewed disruption to flows through the Strait of Hormuz or a potential breakdown in the diplomatic process could trigger fresh volatility in oil prices.
Technically, $71.95 is seen as a support level for Brent, while $73.87 is viewed as a resistance zone.
Stay Updated with The Turkiye Times
Subscribe to be informed about special news, developments and announcements. We will keep you informed.
By signing up, you agree to our Privacy Policy
