Global oil prices continued their downward trend on June 24 as easing geopolitical tensions in the Middle East and improving shipping activity through the Strait of Hormuz reduced fears of supply disruptions. International benchmark Brent crude fell more than 4.5% to below $74 per barrel, while US benchmark West Texas Intermediate (WTI) slipped below $70, marking their lowest levels since before the recent US-Iran conflict.
Market sentiment improved as commercial tankers increasingly resumed normal transit through the Strait of Hormuz after enhanced safety conditions and renewed confidence among shipowners. Maritime intelligence data showed a steady rise in vessel crossings, including LNG carriers returning to the Persian Gulf to load cargoes, signaling a gradual restoration of regional energy exports.
The easing of concerns was further supported by US President Donald Trump’s announcement that tankers passing through the Strait of Hormuz would not face tolls, insurance surcharges, or additional fees. This reassured global energy markets and strengthened expectations that oil supplies from Gulf producers would continue without major disruptions.
According to the International Energy Agency (IEA), the United Arab Emirates has already restored oil exports to nearly 85% of pre-conflict levels by adapting shipping routes and logistics. As a result, traders have largely removed the geopolitical risk premium that had pushed oil prices sharply higher during the conflict, with crude now trading nearly 40% below its wartime peak.
Despite the sharp decline in prices, some factors continue to provide support to the market. The latest data from the American Petroleum Institute (API) showed that crude inventories at the Cushing, Oklahoma storage hub declined by nearly one million barrels, highlighting persistent supply tightness in parts of the US market.
