- In Kuwait, the price of a barrel of crude oil declined by $1.48 to $83.59, reflecting the broader weakness in global oil markets.
Oil prices continued their downward trend on Thursday, edging closer to pre-conflict levels as fears over supply disruptions in the Middle East eased following a preliminary agreement aimed at de-escalating the US-Israeli standoff with Iran.
The improvement in geopolitical conditions allowed stranded tankers to begin exiting the Strait of Hormuz, easing concerns over potential supply bottlenecks through one of the world’s most critical oil shipping routes.
By 00:04 GMT, Brent crude futures for August delivery fell 40 cents, or 0.54%, to $73.34 per barrel. U.S. West Texas Intermediate (WTI) crude dropped 27 cents, or 0.38%, to $70.07 per barrel.
The Brent August contract also traded below the September futures price of $73.59, signaling expectations of a near-term supply surplus.
In Kuwait, the price of a barrel of crude oil declined by $1.48 to $83.59, reflecting the broader weakness in global oil markets.
Analysts say the speed of the decline has surprised traders, with expectations that Middle East supply could recover faster than previously anticipated.
“The speed of this decline has surprised many, as markets are expecting Middle East oil to recover at a much faster pace than many anticipated just two weeks ago,” said IG analyst Tony Sycamore.
On Wednesday, Brent crude fell by more than $3, while WTI also dropped sharply at settlement, as easing geopolitical risks triggered a wave of selling.
U.S. Energy Secretary Chris Wright said crude flows through the Strait of Hormuz are now close to pre-war levels, estimating that around 20 million barrels passed through the waterway in the past 24 hours.
However, he noted that full normalization could take several weeks due to mine-clearing operations.
Oman has opened temporary shipping routes to support tanker movement out of the Strait, with coordination ongoing between the International Maritime Organization and Omani authorities to manage traffic safely.
Diplomatic efforts are also underway, with the Qatari Prime Minister visiting Oman for talks involving Iran, Iraq, and Gulf states on the future management of the strategic waterway.
