Global oil prices have returned to pre-war levels thanks to a diplomatic breakthrough and the unblocking of key logistics routes in the Middle East. This was reported by Qazaqyia.kz citing Kursiv Media.
Benchmark Brent crude fell below $74–$75 per barrel, while US WTI traded around $70–$72, completely eliminating the war risk premium that had pushed prices above $100–$126 in the spring.
Peace deal and reopening of the Strait of Hormuz
The signing of a memorandum between the US and Iran allowed the launch of an international security mechanism and the start of clearing stranded tankers. Shipping through the strait is rapidly normalizing.
60-day sanctions relief for Iran
The US temporarily allowed free exports of Iranian oil during the final negotiation period. The market expects a rapid influx of crude from Iranian tankers and storage.
UAE production recovery
The country's exports have already returned to 85% of pre-war levels, reaching 4.3 million barrels per day.
Weak demand from importers
Major buyers have reduced consumption and adopted a wait-and-see approach, having built up inventories in previous months and betting on further price declines.
The drop in oil prices triggered a wave of declines on global stock exchanges, including the Russian stock market, which hit local lows.
Meanwhile, in the US, President Donald Trump has ordered the Justice Department to investigate oil refining companies. The White House expressed dissatisfaction that gasoline prices at the pump are falling "too slowly" compared to the rapid collapse in crude oil.