Oil prices fell sharply on June 24 as concerns over potential supply disruptions in the Middle East eased, sending both Brent crude and U.S. West Texas Intermediate (WTI) to their lowest settlement levels since before the Iran war.
Reuters reported that Brent crude settled down US$3.34 at US$73.74 per barrel, its lowest settlement since February 27. U.S. WTI crude fell US$2.87 to settle at US$70.34 per barrel after dipping below US$70 during the trading session.
The decline followed signs that crude shipments through the Strait of Hormuz were returning to normal after several days of heightened geopolitical tension. The narrow waterway carries about one-fifth of global oil consumption and remains one of the world’s most important oil transit routes.
Speaking at the Reuters Global Energy Forum in New York, U.S. Energy Secretary Chris Wright said approximately 20 million barrels of crude had passed through the Strait of Hormuz during the previous 24 hours. While he noted that mines remained in parts of the waterway, Wright said oil flows had largely returned to pre-conflict levels.
Reuters reported that the market also responded to improving diplomatic engagement between the United States and Iran, which reduced immediate concerns about disruptions to Gulf crude exports. Traders also weighed the possibility that additional Iranian crude exports could reach international markets if restrictions on those exports were eased.
Investment banks have also begun adjusting their outlook. Reuters reported that J.P. Morgan lowered its Brent crude forecast for the second half of 2026, saying the geopolitical risk premium that supported prices during the conflict had begun to fade.
The recovery however was short-lived. Reuters reported that oil prices edged higher on June 25 after reports that a cargo vessel near Oman had been struck by an unidentified projectile. The incident renewed concerns about maritime security in the Gulf, with Brent rising to around US$74.67 per barrel and WTI trading near US$71.50.
Although tanker traffic through the Strait of Hormuz has improved, the situation remains fluid. Markets continue to monitor developments in the region, as any disruption to shipping or oil infrastructure could quickly affect global crude supplies and prices.