Oil prices fall to pre-war levels as Brent slips to $72 per barrel

NEW DELHI: Oil prices dropped to pre-war level with Brent crude slipping to $72 per barrel on Thursday. The latest decline comes after a sharp 4 per cent fall in the previous session, bringing Brent back to its closing level seen before the US-Iran conflict began.

Furthermore, a clear sign of easing tensions has been the exit of stranded tankers from the Strait of Hormuz following an initial accord to end the U.S.-Israeli war with Iran, easing supply concerns after months of disruptions.

Early on Thursday, crude oil was trading at $69.20 LTP, 1.18 per cent lower, while Brent crude was trading at $72.28 per barrel. At the same time, WTI crude oil price was at $69.15 per barrel, down 1.19 points or 1.69 per cent. Furthermore, Brent had dropped over $3 on Wednesday as supply concerns eased, and WTI settled down nearly USD 3.

Oil benchmarks found some relief after the International Maritime Organization announced on Tuesday that Iran and Oman would coordinate a large-scale evacuation of over 11,000 stranded seafarers via the Strait of Hormuz.

US Energy Secretary Chris Wright said at a forum on Wednesday that oil flows through the Strait of Hormuz had nearly returned to pre-war levels following the Iran conflict, noting that at least 20 million barrels had passed through the strait in the past 24 hours. He added that a full return to normal operations could take a few weeks, as the waterway still needs to be cleared of mines.

Recently, the United States temporarily lifted sanctions on Iranian oil and petrochemical exports. Additionally, a total of 6.79 million barrels departed the Middle East Gulf in the week of June 15, the highest since May 1, maritime intelligence firm Windward posted on X. (ANI)