Oil prices back to pre-war levels on rising Middle East supply | Business and Economy News
Oil Prices Reach Lowest Levels Since February Amid Rising Supply Concerns
Oil prices have fallen to levels not seen since before the onset of the Iran war, as increased expectations of supply from the Middle East have overshadowed demand worries.
As of 06:39 GMT on June 25, 2026, prompt-month Brent crude futures for August delivery dropped $1.06 (1.44%) to $72.68 per barrel, while U.S. West Texas Intermediate (WTI) decreased by 76 cents (1.08%) to $69.58 per barrel. Both contracts hit their lowest prices since February 27.
The market volatility is further demonstrated by the August Brent trading below September futures, which were priced at $73.59, indicating a perception of oversupply in the short term.
On Wednesday, Brent crude fell by more than $3 as easing supply concerns took hold, with WTI settling down nearly $3.
U.S. Energy Secretary Chris Wright reported that oil flows through the Strait of Hormuz have returned to levels seen prior to the war with Iran, with over 20 million barrels having exited the strait in the last 24 hours. However, he noted that achieving complete normality in the region would require several weeks as the strait needs to be cleared of mines.
The anticipated increase in Middle East supply, coupled with Iran’s plan to boost oil sales following a temporary lift on U.S. sanctions, has contributed to the decline in global crude oil prices.
An agreement reached last week to halt hostilities between the U.S. and Israel with Iran, which began on February 28, has facilitated the reopening of traffic through the Strait of Hormuz. This accord initiated a 60-day negotiation period to address more complex issues such as Iran’s nuclear program.
Wright assured that oil shipments would continue through the strait even if the agreement were to falter, asserting that Iran would not be able to block the passage.
Tehran has announced plans to impose what it describes as maritime service fees, which the United States contests, stating that the strait is an international waterway and should not incur charges.
In response to the situation, Oman opened temporary routes on June 24 to facilitate tanker departures from the strait, with coordination from the International Maritime Organization and Omani authorities.
However, on June 25, the Iranian Revolutionary Guards issued a warning against unapproved crossings of the Strait of Hormuz, stating that vessels failing to comply “will be dealt with” and denounced the newly established routes.
