Global Oil Prices Drop to Pre-Iran War Levels as Hormuz Traffic Resumes
Why this matters: local context for readers following news across Pakistan and the region.
Global oil prices dropped sharply on Wednesday, falling to their lowest levels seen before the start of the US-Iran war as more stranded oil tankers resumed movement through the Strait of Hormuz. Brent Crude, the international oil benchmark, declined by more than $3, trading at $73.65 per barrel, while West Texas Intermediate slipped below $70, settling near $69.87 a barrel — its lowest level since early March. During trading, Brent briefly touched $73.22, marking its weakest point since late February, just before military strikes carried out by the United States and Israel against Iran. Shipping data showed that three oil tankers previously stranded in the Strait of Hormuz, carrying roughly five million barrels of crude, resumed their journeys on Wednesday, with two vessels heading toward Asian markets. The movement followed an interim agreement between the US and Iran that is expected to ease restrictions on oil supply flows from the Gulf. Crude cargoes in physical markets were reportedly being sold at discounted prices worldwide as increased Middle Eastern supply began reshaping trade patterns, with Iran preparing to expand exports following temporary sanctions relief from the US. Media quoted experts as saying that if sanctions are relaxed further, Iran could increase production and exports relatively quickly due to large volumes of crude already stored aboard tankers, potentially bringing additional supply online within weeks. Meanwhile, Oman announced that shipping through the Strait of Hormuz would remain unrestricted, with no transit fees being imposed. Authorities also introduced temporary northern and southern navigation routes to ensure safe passage for vessels leaving the Gulf. Despite the optimism, uncertainty remains over the long-term stability of the US-Iran agreement. President Donald Trump recently claimed Iran had accepted indefinite nuclear inspections, though Tehran has publicly denied making such commitments. Pakistan Says US-Iran Technical Tal