London, June 25, 2026 — Global oil prices have fallen back to levels last seen before the outbreak of the Iran conflict, as shipping activity through the strategically important Strait of Hormuz continues to recover following diplomatic efforts between Washington and Tehran.
Brent crude, the international benchmark for oil prices, briefly dropped below $72.50 per barrel on Thursday before stabilizing slightly higher at around $72.63. The decline marks a significant turnaround from the sharp price increases recorded during the height of the conflict, when fears over disruptions to global energy supplies pushed oil markets higher.
The Strait of Hormuz, one of the world’s most critical maritime chokepoints, became a major focus of concern after Iran responded to US and Israeli military strikes by effectively restricting traffic through the waterway. The narrow passage serves as a vital route for the transportation of crude oil, liquefied natural gas (LNG), and a wide range of other commodities from the Gulf region to international markets.
Energy markets have been steadily calming since June 17, when the United States and Iran signed a Memorandum of Understanding (MOU) that established a 60-day framework for negotiations aimed at addressing Tehran’s nuclear programme and bringing an end to the conflict. The agreement was viewed by investors as a major step toward reducing tensions in the region and restoring stability to global energy supplies.
Momentum toward a broader settlement increased further after American and Iranian officials met in Switzerland last weekend for direct talks. The discussions focused on measures to end hostilities and improve regional security. Following the meeting, Washington announced a partial easing of sanctions on Iranian oil exports, a move that analysts believe has helped boost confidence in energy markets and contributed to the decline in crude prices.
According to maritime intelligence company Kpler, vessel traffic through the Strait of Hormuz has increased noticeably since the signing of the MOU. Data collected by the firm shows a growing number of ships using the route to transport crude oil, LNG, fertilizer, and other commercial cargoes.
The rise in maritime activity is being seen as one of the clearest indicators that shipping companies are gradually regaining confidence in the security of the waterway after weeks of uncertainty. Industry experts say the return of commercial traffic has played a key role in easing concerns about potential supply shortages that had previously driven oil prices higher.
Qatar and Pakistan, which have served as mediators between the United States and Iran, said in a joint statement earlier this week that both sides had established a direct communication channel designed to prevent misunderstandings and ensure the safe passage of commercial vessels through the Strait of Hormuz.
Maritime security specialists report that conditions in the region have improved significantly compared with the early days of the conflict. Dimitris Maniatis, chief executive of maritime risk advisory firm Marisks, described the recent increase in vessel movements as a major shift from the situation seen during the height of tensions.
According to estimates provided by his company, approximately 80 vessels have crossed the Strait of Hormuz since Monday, following the first round of peace negotiations between American and Iranian representatives in Switzerland.
Maniatis explained that some ships have been permitted to use a northern navigation corridor under authorization from Iranian authorities. At the same time, the US Navy has issued guidance directing commercial vessels through a southern route that has been assessed as safe from mines and other navigational hazards that emerged during the conflict.
Despite the improvement, shipping activity has not yet returned to normal levels. Before the outbreak of hostilities, more than 100 vessels passed through the Strait of Hormuz each day. Current traffic remains below that figure, and maritime tracking data suggests that hundreds of ships are still waiting in Gulf waters before resuming their journeys.
The recent fall in oil prices is also drawing attention to fuel costs faced by consumers. Retail gasoline prices surged when the conflict began, reflecting concerns over supply disruptions and rising crude costs. Now, governments and motorists alike are watching closely to see how quickly lower oil prices translate into relief at fuel stations.
In the United States, the average price of regular gasoline has declined to approximately $3.93 per gallon after reaching around $4 per gallon in April, its highest level since 2022. However, fuel costs remain above the levels recorded before the conflict, prompting criticism from political leaders and consumers.
President Donald Trump on Wednesday ordered an investigation into major energy companies, accusing some of the industry’s largest firms of failing to pass lower oil prices on to consumers. The investigation is expected to examine pricing practices across the fuel supply chain.
Speaking to reporters at the White House, Trump argued that motorists should already be benefiting from the decline in crude prices and questioned why retail fuel prices had not fallen more sharply.
Several major energy companies, including Shell and ExxonMobil, have come under scrutiny as part of the administration’s review. Industry representatives, however, maintain that gasoline prices do not move in direct proportion to changes in crude oil markets and are influenced by refining costs, transportation expenses, taxes, and other factors.
The American Petroleum Institute, which represents the US oil and gas sector, defended the industry’s position, stating that fuel prices do not always adjust immediately in response to movements in crude oil benchmarks.
Similar concerns have emerged in the United Kingdom, where some energy companies have faced accusations of increasing petrol prices too aggressively during the conflict while being slower to reduce them as oil prices fall.
However, Britain’s competition watchdog said last month that its investigation found no widespread evidence of unfair pricing practices. Regulators noted that average profit margins in the sector remained broadly stable between February and March, suggesting that retailers were not significantly increasing profits at consumers’ expense.
As diplomatic efforts continue and shipping traffic gradually returns to normal, markets are increasingly hopeful that the worst of the energy disruption caused by the Iran conflict may be over. Analysts caution, however, that oil prices remain highly sensitive to developments in the region, and any setback in negotiations could quickly reignite volatility across global energy markets.
