Brent crude tumbled to $71 per barrel as tensions in the Middle East eased, with oil exports from the UAE returning to pre-war levels. Despite US-Iran exchanges, diplomatic efforts continue, though direct talks have not yet occurred.
The decline in oil prices to pre-conflict levels suggests a de-escalation of Middle East tensions, which could impact global energy markets and related economies. The situation also highlights the ongoing diplomatic efforts and the strategic importance of the Strait of Hormuz.
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.
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