Crude Oil Prices Drop as Hormuz Tensions Ease

Jul 2, 2026

60 min

Jul 2, 2026 00:31

Crude oil extends post-war slump as Hormuz fears fade, prices sink below peak levels

## Oil Prices Decline

Crude oil prices have continued their downward trend as geopolitical tensions in the Middle East ease. This follows a Memorandum of Understanding between the US and Iran on June 17, 2026, aimed at restoring commercial shipping through the Strait of Hormuz.

## Impact on Global Markets

On Thursday, West Texas Intermediate (WTI) crude decreased by 58 cents to $68.00 per barrel, while Brent crude fell by $1.78 to $71.162 per barrel. Murban crude, a key benchmark for Middle Eastern exports, saw the largest drop, falling by $3.37 to $65.64 per barrel.

## Recovery in Hormuz Traffic

Shipping traffic through the Strait of Hormuz is gradually recovering, though it remains below pre-conflict levels. Analysts suggest that the decline in oil prices reflects confidence that physical oil supplies will remain stable, with major producers maintaining high production levels.

## Market Focus Shifts

Investors are now concentrating on market fundamentals such as global demand, inventories, and production policies from OPEC+ and the US. The significant drop in Murban crude indicates optimism that Gulf exports will continue despite regional tensions. If shipping normalizes, crude prices may stay low unless new supply disruptions or increased global demand arise.

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