Oil prices fall to levels last seen before Iran war as shipping resumes in Strait of Hormuz

The price of oil dropped to levels not seen since before the conflict with Iran began as tanker traffic through the Strait of Hormuz picked up.

Global benchmark Brent crude fell below $72.48 a barrel at one point, the level it held the day before U.S. and Israeli strikes on Iran on Feb. 28, before trading around $72 to $75. West Texas Intermediate crude also declined to near $69.

Shipping companies sent more vessels through the narrow waterway that carries about one-fifth of the world's oil supply.

Data from tracking firm Kpler showed 109 vessels transited the strait over the weekend, the highest number since fighting started.

President Donald Trump noted the flow in a post.

"19 Million Barrels of Oil flowed out of the Hormuz Strait yesterday, an all time RECORD. Oil prices are tumbling down, and the World is a much safer place!!!" Trump wrote on Truth Social.

The increase in traffic follows a memorandum of understanding between the U.S. and Iran aimed at ending the war and reopening the strait.

Officials signed the MOU in mid-June, with talks on a final agreement set for the next 60 days. Iran agreed to allow shipping to resume, while the U.S. moved to ease its naval blockade.

Traffic remains below pre-war levels of more than 130 ships per day. Hundreds of vessels still wait in a backlog.

Mines laid during the conflict continue to pose risks, with ships using alternative routes in Iranian or Omani waters. The U.S.-led Joint Maritime Information Center lowered the threat level to moderate but warned mariners about mines and naval presence.

Energy prices rose sharply after Iran effectively closed the strait in response to the initial attacks. Tanker traffic dropped by 70% or more at times, and some days saw almost no movement.

Oil prices climbed above $100 a barrel during the worst disruptions. The return of supply from the Persian Gulf now puts downward pressure on prices.

Analysts track the situation closely. Dimitris Maniatis, chief executive of maritime risk firm Marisks, described a "tremendous shift" with more ships using the strait in recent days.

Oil producers in the Gulf and buyers in Asia stand to gain from resumed flows.

North Sea crude prices also weakened as Middle East supply returned to the market.

Some experts say it could take months for full normalization, as shipping companies weigh ongoing risks and clearance operations continue.

The U.S. and Iran reached the interim agreement after weeks of negotiations.

Trump announced progress and authorized steps to open the strait. Iranian state media reported details on reopening under their arrangements.

Markets reacted quickly to signs of easing tensions. Oil futures settled lower in recent sessions as more tankers moved through the waterway. Some vessels turned off tracking signals earlier in the crisis, but open transit increased after the deal.

Shipping associations and tanker operators monitor conditions. The International Maritime Organization reports stranded vessels and crews from the earlier shutdown.

Full recovery of pre-war volumes depends on clearing remaining hazards and building confidence among operators.

Oil prices traded near three-month lows in recent days.

The drop comes as summer demand approaches, but increased supply from the Gulf offsets some pressure. U.S. officials noted flows reaching higher levels amid the negotiations.