Global Oil Prices Fall as Hormuz Strait Traffic Resumes

Global oil prices weakened on Thursday, wiping out gains accumulated during the Middle East conflict, as supply fears receded and tanker traffic through the Strait of Hormuz began to recover. International benchmark Brent crude fell 1.7 per cent to below 72.50 US dollars per barrel, whilst West Texas Intermediate (WTI) crude slipped 1.4 per cent to around 69.40 US dollars per barrel. The decline brings prices back near levels seen before the outbreak of war in the Middle East at the end of February 2026. Market participants assessed that global oil supply is improving after the strategic Strait of Hormuz shipping lane was reopened. Trade monitoring firm Kpler reported that more than 20 tankers carrying approximately 35 million barrels of crude oil have transited the Strait of Hormuz since the United States and Iran reached an agreement to reopen the route. Most of these are non-Iranian tankers that had been stranded in the Persian Gulf for more than three months after Tehran effectively restricted maritime traffic at the onset of the conflict. The majority of the oil cargoes are expected to arrive at destinations in Asia by early August, raising hopes of improved physical crude supply in the coming weeks. The Strait of Hormuz is one of the world’s most critical energy corridors, serving as the primary transit route for crude oil and liquefied natural gas from Gulf producers to global markets. Despite the easing of oil prices, security risks in the region persist. The Islamic Revolutionary Guard Corps Navy on Thursday warned that shipping through the Strait of Hormuz is only permitted via routes designated by Tehran, stating that vessels violating navigation instructions will face consequences. The warning underscores that, although tanker traffic is recovering, the normalisation of energy flows through the Gulf region remains vulnerable to military and political risks.