Oil prices have fallen as investors bet on improved global crude supplies. This decline follows a period of high volatility that began in February when Iran effectively closed the Strait of Hormuz in response to attacks by the United States and Israel. Prices have now moved closer to levels not seen since the start of the conflict.
The downward trend comes as a U.S.-Iran agreement appears to hold and the United States has unblocked international Iranian oil sales. Consequently, tankers that were stranded in the Persian Gulf for months have begun to exit the Strait of Hormuz. US Energy Secretary Chris Wright noted that flows through the strait are currently close to those seen before the war began.
The global benchmark pushed lower for a fourth consecutive session, dropping below the pre-war closing price of $72.48. Brent crude reached its lowest level since February 27, erasing all wartime gains during the session before rebounding to close near US$75. Despite the current surge of exiting tankers, the market is expected to tighten again.