Global oil prices have fallen to their lowest levels since the start of the war in the Middle East

Global oil prices plummeted, falling to their lowest levels since the start of the large-scale armed conflict in the Middle East involving the United States, Israel, and Iran. 

As a result of active trading, August Brent crude oil futures lost $3.42, falling to $73.65 per barrel, while at the peak of the decline, the price dropped to $73.22—the lowest level since late February, when the first hostilities began. At the same time, U.S. WTI crude oil fell by $3.32 and traded at $69.87 per barrel, hitting its lowest level since early March.

The main driver of the de-escalation on commodity exchanges was the reopening of the strategic Strait of Hormuz and the resumption of free navigation following the successful launch of peace talks between Washington and Tehran. Traders noted the departure of the first three previously blocked supertankers, which together transported about five million barrels of oil from the region to Asian markets. Additional pressure on pricing is coming from the White House’s decision to temporarily lift economic sanctions against Tehran for sixty days, allowing investors to factor the rapid return of Iranian oil to the global market into their forecasts.

This was reported by Reuters.

Qatar has begun preparing its tanker infrastructure and plans to restore liquefied natural gas (LNG) production to normal levels within a few weeks. 

Fertilizer exports through the Strait of Hormuz have risen to pre-war levels, according to Bloomberg.

Global oil prices fell sharply on Thursday, June 19, amid reports of an agreement between the U.S. and Iran. Brent futures fell to $77.96 per barrel, and WTI futures to $74.96, the lowest levels since late February.