Oil Prices Drop to Pre‑Iran War Levels as Strait Traffic Resumes

Thu Jun 25 2026 11:34:26 GMT+0000 (Coordinated Universal Time)

Brent crude falls below $72 for first time since Iran war, with shipping lanes opening and U.S. sanctions easing.

Brent crude prices slipped past the $72 mark, a level last seen before the Iran war, as traffic through the Strait of Hormuz has begun to recover. The recent U.S.–Iran Memorandum of Understanding has led to a partial lift of sanctions, encouraging vessels to resume passage. While crude prices have moved sharply lower, fuel costs at the pump are not yet reflecting these gains. Analysts warn that full market alignment may still take several months as shipping patterns and political risks adjust.

Oil Prices Drop to Pre‑Iran War Levels as Strait Traffic Resumes

The price of oil has fallen to levels not seen since before the Iran war as traffic through the key Strait of Hormuz shipping route gradually resumes.

Brent crude briefly dipped below $72.48 a barrel, the price it hovered around the day before the U.S. and Israel launched attacks on Iran on 28 February, before climbing back to $72.63. Energy prices have swung wildly since Iran responded to the strikes by effectively closing the Strait, a critical waterway for oil and gas shipments.

The cost of crude has been moving sharply lower since the U.S. and Iran signed a Memorandum of Understanding (MOU) on 17 June, which set a 60‑day period for negotiations on Tehran’s nuclear programme and other measures to end the war. Representatives from the two sides met in Switzerland last weekend for talks to end the war, which resulted in the U.S. partially lifting sanctions on Iranian oil exports.

According to maritime intelligence firm Kpler, the number of vessels crossing the Strait of Hormuz has risen significantly since the MOU was signed. The ships include those carrying crude, liquefied natural gas, fertiliser and other goods. Kpler told the BBC that around 80 ships have crossed the Strait since Monday after the first round of peace talks.

A limited number of ships can use a northern passageway with permission from Iranian authorities, while the U.S. Navy provides guidance for vessels travelling a southern route that is safe from mines and other obstacles.

However, the number of ships still remains below the pre‑war levels, when the Strait was used by more than 100 ships a day. Hundreds of ships appear to be waiting in the Gulf.

Fuel prices at the pump rose sharply when the Iran war began, and now the focus is on how quickly they will fall. The average price of regular gasoline in the U.S. has dropped to about $3.93 a gallon after peaking at $4.00 in April, yet remains above pre‑war levels.

U.S. President Donald Trump announced an investigation into major energy companies, accusing Shell, ExxonMobil and others of "gouging" drivers by not reducing fuel prices even as oil costs fell. Trump said, “Oil prices have come down so much and we are not seeing anything at the pump by comparison the way they should be.” The American Petroleum Institute responded that fuel prices do not move in lockstep with crude oil.

British energy firms faced similar accusations since the Iran war, though the UK competition watchdog found no widespread evidence of price gouging.