Global oil prices declined to levels seen before the start of the US-Iran conflict, with Brent crude falling to around $72 per barrel on Thursday. The drop followed a sharp 4% decline in the previous trading session, pushing Brent back to its earlier closing range before geopolitical tensions disrupted markets. The recent fall in crude prices came as concerns over supply disruptions eased. A key factor behind the improvement in market sentiment was the movement of previously stranded oil tankers through the Strait of Hormuz after an initial agreement aimed at ending the US-Israel conflict with Iran. The development reduced fears of prolonged supply interruptions from one of the worlds most important oil transit routes.

At the time of reporting, crude oil was trading at $69.20 per barrel, down 1.18%, while Brent crude stood at $72.28 per barrel. Meanwhile, West Texas Intermediate (WTI) crude was priced at $69.15 per barrel, falling 1.69%. Brent crude had already dropped by more than $3 on Wednesday, while WTI crude also ended the session nearly $3 lower, as traders reacted positively to signs of improving supply conditions.

Oil markets received additional support after the International Maritime Organization announced that Iran and Oman would work together on a major evacuation operation for more than 11,000 stranded seafarers in the Strait of Hormuz. US Energy Secretary Chris Wright said on Wednesday that oil shipments through the strategic waterway had almost recovered to pre-conflict levels following the Iran tensions. He noted that around 20 million barrels of oil had moved through the strait in the previous 24 hours. However, he added that completely normal operations may take several weeks as the region continues efforts to clear possible maritime risks, including mines.

The United States has temporarily eased sanctions affecting Iranian oil and petrochemical exports, further supporting expectations of increased global supply. According to maritime intelligence firm Windward, around 6.79 million barrels of oil left the Middle East Gulf during the week beginning June 15, marking the highest level since May 1. The increase in exports added further pressure on crude prices as supply concerns continued to fade.

Disclaimer: This image is taken from Reuters.