Global oil prices have dropped to their lowest levels since before the outbreak of the Middle East conflict, as the strategically vital Strait of Hormuz gradually reopens following a ceasefire agreement between the United States and Iran.
Brent crude fell below $73 per barrel for the first time since the beginning of the war on February 28, at one point dropping by around 2% to $72.24 per barrel.
The decline is expected to ease cost-of-living pressures, as lower wholesale oil prices typically translate into reduced fuel costs for consumers over time.
The development follows a temporary 60-day memorandum of understanding between United States and Iran aimed at ending the conflict and restoring maritime traffic through the Hormuz Strait. The agreement includes partial easing of U.S. sanctions on Iranian oil exports.
As part of the deal, ships carrying crude oil, liquefied natural gas (LNG), fertilizers, and other goods have begun passing through the waterway again, signaling a gradual normalization of global energy supply routes.
Energy analysts note that fears of a prolonged global energy crisis are easing as shipping traffic resumes and supply pressures diminish. However, they caution that full stabilization will take time as transport delays are cleared and production adjusts.
Before the conflict, oil prices had surged to as high as $120 per barrel, with disruptions in the Hormuz Strait raising concerns of a sharp global inflation spike due to restricted energy flows.
The reopening of the strait marks a significant shift in global energy markets, reducing immediate supply risks while keeping longer-term geopolitical uncertainties in focus.
