Oil prices have dropped to lows not seen since Iran war began, driven by expectations of more supply from Middle East. At 06:39 GMT, Brent crude futures for August fell $1.06,or 1.44%,to $72.68 a barrel. Meanwhile,US West Texas Intermediate (WTI) slipped 76 cents,or 1.08%,landing at $69.58 a barrel.
Both crude benchmarks hit lowest levels since February 27,before conflict escalated. August Brent traded below September's $73.59, signaling short-term supply glut. Just Wednesday,Brent tumbled over $3,while WTI nearly $3.
US Energy Secretary Chris Wright says oil flow through Strait of Hormuz almost back to pre-war levels,with over 20 million barrels passing in last 24 hours . But full normalization needs weeks due to mine clearance still ongoing.
Price drop factors include rising Middle East oil supply and Iran's expected sales boost after temporary US sanctions easing. An initial deal last week to halt US-Israeli conflict with Iran,started February 28,has allowed traffic to resume through vital strait. This deal kicks off 60-day talks to tackle thornier issues,like Iran's nuclear goals .
Wright assured oil through strait will continue,even if deal collapses,saying Iran can't close it again. Tehran plans what it calls maritime service fees,which US disputes,arguing strait is international waterway and should stay toll-free .
To ease tanker traffic,Oman opened temporary routes Wednesday,with International Maritime Organization and Omani authorities' help. But tensions high,Iran's Revolutionary Guards warned against unauthorized strait crossings. Vessels not complying face consequences. New routes condemned…
