Key facts
- Brent crude fell to $71 per barrel, its lowest level since late February.
- Tensions between the US and Iran have heightened following recent exchanges of fire.
- Diplomatic efforts are ongoing, though direct talks between the US and Iran have not occurred.
- Iran maintains control over the Strait of Hormuz.
- UAE oil exports have resumed to pre-war levels.
Oil prices have fallen to their lowest level since late February, reaching pre-Iran war levels amid ongoing tensions in the Middle East. Brent crude, the international benchmark, dropped to $71 per barrel on Thursday morning.
The easing of tensions follows a period of exchanges of fire between the US and Iran, stemming from an Iranian drone attack on a cargo ship in the Strait of Hormuz. The US responded with retaliatory strikes on Iranian military infrastructure.
Despite the heightened rhetoric, diplomatic efforts are continuing. Envoys for US President Donald Trump, Steve Witkoff and Jared Kushner, met with mediators in Qatar. However, Iran has stated there were no plans for direct talks. Iran's deputy foreign minister, Kazem Gharibabadi, asserted that the Strait of Hormuz is under Iran's command and not Centcom's.
Nevertheless, an uptick in traffic through the strait, supported by American military presence, has contributed to the decline in oil prices. Oil exports from the UAE have also reportedly returned to pre-war levels through the use of workarounds.