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, according to foreign media reports. This was reported by Qazaqyia.kz citing Kursiv Media.
Benchmark Brent crude has fallen below $74–$75 per barrel, while US WTI crude is trading around $70–$72, completely eliminating the war risk premium that pushed prices above $100–$126 in the spring.
Peace agreement and reopening of the Strait of Hormuz
The signing of a memorandum between the US and Iran has enabled the launch of an international security mechanism and the start of the withdrawal of stranded tankers. Shipping through the strait is rapidly normalizing.
60-day suspension of sanctions on Iran
The US has temporarily allowed free exports of Iranian oil during the final negotiations. The market expects a rapid influx of crude from Iranian tankers and storage facilities.
Recovery of UAE production
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 expecting further price declines.
The drop in oil prices triggered a wave of declines in global stock markets, including the Russian stock market, which updated local lows.
Meanwhile, in the US, President Donald Trump has ordered the Department of Justice 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 of crude oil.