Oil prices crash to four-month low — Reuters
Photo: Brent crude oil prices plummeted amid the easing of US sanctions (Getty Images)
Global prices for Brent crude oil are falling sharply amid expectations that supplies through the strategically important Strait of Hormuz will stabilize, according to Reuters.
Why oil prices falling
According to the agency, on Wednesday, Brent crude futures fell by over 1%, reaching $75.88 per barrel. This is the lowest level since late February, when US-Israeli strikes against Iran began.
At the same time, US West Texas Intermediate (WTI) crude fell to $72.07.
The main reason for the decline is evidence that more oil tankers are preparing to leave the Strait of Hormuz following the recent ceasefire agreement between the US and Iran.
In addition, the market is under pressure from the temporary 60-day suspension of Washington’s sanctions against Tehran, which allows Iran to rapidly increase its exports. The easing of hostilities in Lebanon has also reduced geopolitical premiums on crude oil.
The UN Maritime Agency is already developing an evacuation plan for hundreds of stranded vessels. Oman, for its part, has promised to keep the strait open without charging fees and has designated two safe routes.
Market analysts note that investors are pricing in a rapid return of Iranian oil to the global market.
"While there are early encouraging signs of increased tanker activity, the market is pricing in the broader scenario of Iranian oil re-entering the global market and the Strait of Hormuz normalising," predicts Tim Waterer, chief market analyst at KCM Trade.
However, the long-term stability of the agreement remains in question due to disagreements between the US and Iran over nuclear inspections. Currently, Macquarie analysts expect the average price of Brent crude to be $77.09 per barrel in 2026.
Oil prices drop
Global oil prices began to plummet as early as mid-June 2026 amid initial reports of a possible end to the conflict in the Middle East.
Specifically, on June 15, the price of Brent crude plummeted by 4.7% to $83.25 per barrel, as markets reacted instantly to the prospect of peace between the US and Iran.
The escalation began to subside after US President Donald Trump announced the imminent signing of a bilateral memorandum and promised to completely lift the blockade on Iranian seaports.
Despite another Israeli airstrike on Beirut, the White House chief confirmed Washington’s readiness to conclude a peace agreement with Tehran via video conference, calling on the Iranian side to refrain from launching massive missile strikes in retaliation.
