Global Oil Prices Slide as Middle East Supply Concerns Fade

Oil prices continued to fall on Thursday, dropping close to levels recorded before the start of US-Israel attacks on Iran, amid improving supply prospects from the Middle East. Brent crude futures for August delivery declined by $1.22, or 1.65 per cent, trading at $72.52 per barrel. US West Texas Intermediate (WTI) crude slipped $1.02, or 1.45 per cent, to $69.32 per barrel. Both benchmark contracts reached their lowest levels since February 27. The August Brent contract was also trading below September futures, which stood at $73.59 per barrel, indicating sufficient short-term supply availability in the market. Rapid price decline had surprised many traders, as markets were now anticipating a much faster return of Middle Eastern oil supplies than expected just weeks earlier. Brent prices had already dropped more than $3 on Wednesday, while WTI crude settled nearly $3 lower after fears over supply disruptions eased. Growing crude supply from the Middle East, along with expectations that Iran may increase oil exports following temporary relief from US sanctions, has also put downward pressure on global oil prices. A preliminary agreement reached last week to end the US-Israel conflict with Iran has allowed shipping traffic to resume through the Strait of Hormuz. The agreement also introduced a 60-day negotiation period to address unresolved issues, including Iran’s nuclear programme. Meanwhile, Oman has opened temporary shipping routes to help oil tankers exit the Strait of Hormuz, with authorities working alongside the International Maritime Organisation to manage vessel movements. Global Oil Prices Drop to Pre-Iran War Levels as Hormuz Traffic Resumes