The price of oil has fallen to levels not seen since before the Iran‑war as traffic through the key Strait of Hormuz shipping route gradually resumes.
Global benchmark Brent crude briefly fell below $72.48 (£55) a barrel, the price it was at the day before the US and Israel launched attacks on Iran on 28 February, before edging up to $72.63.
Energy prices have been on a wild ride since Iran responded to the strikes by effectively closing the strait, a critical waterway for oil and gas shipments.
The cost of crude has been moving sharply lower since the US and Iran signed a memorandum of understanding (MOU) on 17 June, setting out a 60‑day period for negotiations on Tehran’s nuclear programme and other measures to end the war.
Representatives from the two sides met in Switzerland last weekend for talks to end the war, which resulted in the US partially lifting sanctions on Iranian oil exports.
The number of vessels crossing the Strait of Hormuz has risen significantly since the MOU was signed, according to maritime intelligence firm Kpler.
Ships have passed through the waterway in recent days carrying crude oil, liquefied natural gas (LNG), fertiliser and other goods.
A “communication line” between the US and Iran was set up to prevent misunderstandings, with the aim of safe passage for commercial vessels through the Strait.
There has been a “tremendous shift” with far more ships using the strait in recent days.
The chief executive of Marisks, a maritime risk advisory firm, estimates around 80 ships have crossed the Strait since Monday after the first round of peace talks.
A limited number of ships can cross a northern passageway with the permission of Iranian authorities. The US navy also provides guidance for vessels travelling a southern route that is safe from mines.
Nevertheless, ship traffic is still below pre‑war levels of more than 100 ships a day, with hundreds of vessels still waiting in the Gulf.
Fuel prices at the pump rose sharply when the Iran war began and now the focus is on how quickly they will fall.
The average American gasoline price has dropped to around $3.93 a gallon after reaching $4 back in April, its highest since 2022.
US President Donald Trump ordered an investigation into major energy companies, accusing Shell, ExxonMobil and others of “gouging” drivers as oil costs fell.
The American Petroleum Institute said fuel prices “don’t move in lockstep with crude oil.”
Similar accusations have surfaced in Britain, where the competition watchdog reported no widespread evidence of price‑hiking practices and said profit margins were broadly unchanged between February and March.
