Oil prices extended their drop on June 24, 2026, reaching near four-month lows as more oil tankers openly transited the Strait of Hormuz and diplomatic efforts between the U.S. and Iran showed progress towards ending the war. Brent crude, the global benchmark, fell below $75 a barrel for the first time since the war began, shedding as much as 3.1% and reaching its lowest point since February 27. Similarly, U.S. West Texas Intermediate (WTI) crude slipped below $70 a barrel, a level not seen since March 2. This decline largely erased the gains made during the peak of the conflict.
The increased confidence among shipowners was evident as vessels began transiting the waterway with their satellite signals switched on. The International Maritime Organization also confirmed receiving safety guarantees, allowing hundreds of ships to depart the Persian Gulf. Coupled with a 60-day sanctions waiver granted to Iran following initial peace talks, which allows Iran to continue selling oil, these developments indicate a significant easing of supply concerns. The United Arab Emirates, for instance, is already exporting oil at nearly 85% of pre-war levels, having sold approximately 60 million barrels from the Persian Gulf in recent weeks.
Despite the overall decline in oil prices, falling around 40% from their conflict-era highs, some market tightness remains, particularly in the U.S. The American Petroleum Institute (API) reported a 1 million barrel draw in crude inventories at Cushing, Oklahoma, last week, potentially pushing stockpiles below the critical 20 million barrel minimum operating level. Separately, former President Donald Trump called for a Department of Justice probe into why gasoline prices haven't fallen faster, despite the national average retail price dropping 14% since late May to below $4 a gallon. Retail diesel prices also fell below $5 a gallon for the first time since mid-March.
