Oil price falls to pre-Iran war levels as more tankers exit strait of Hormuz

Cargo ships in the Gulf, near the strait of Hormuz. Photograph: Reuters View image in fullscreen Cargo ships in the Gulf, near the strait of Hormuz. Photograph: Reuters Oil price falls to pre-Iran war levels as more tankers exit strait of Hormuz Fears of long-lasting energy crunch ‘slinking away’ as vessel traffic doubled in 24 hours to highest level since late February Business live – latest updates Oil prices have fallen below levels seen before the Iran war started in late February as more oil tankers exited the strait of Hormuz. Brent crude, the global benchmark, fell to a low of $72.24 a barrel on Thursday, slightly lower than the day before the US and Israel launched missile attacks on Tehran on 28 February. Prices have fallen more than 20% this month. Brent crude for August delivery was ‌trading lower than that for September, which ‌was priced at $73.59, signalling ample short-term supply. Vessel traffic in the strait, a vital shipping passage, doubled over the previous 24 hours to its highest level since late February, according to CNN and MarineTraffic data. What could US-Iran peace deal mean for UK household costs? Read more Ipek Ozkardeskaya, senior analyst at Swissquote, said news that vessels are now transiting the strait of Hormuz with their satellite signals switched on had helped push down the oil price. She added: “A combination of strategic inventory releases, a collapse in demand from top buyer China and a substantial number of tankers quietly leaving the Persian Gulf “dark” had contributed to a small oversupply in some important markets.” Susannah Streeter, chief investment strategist at the Wealth Club, said: “Fears of a long-lasting global energy crunch induced by the Iran conflict are slinking away, with oil prices sinking back towards pre-crisis levels. Instead of relief coursing through European markets, there’s still a big dose of caution as the knock-on effects of the record-breaking heatwave collide with concerns about weak growth across the region.” A Liberian oil tanker made its way out of the strait on Thursday using a new route close to Oman’s shore that has been promoted by a UN maritime agency, despite threats from Iran’s paramilitary Revolutionary Guards. Tensions are rising again between Iran and the US over the terms of their interim accord. In a memorandum of understanding signed last week, both sides agreed to a 60-day period while they try to negotiate a permanent peace deal. A big threat to the deal is Lebanon. Israel launched an airstrike that killed two people in southern Lebanon on Wednesday, the country’s state-run news agency said. It was Israel’s first airstrike in the country since the latest ceasefire took effect on Saturday. skip past newsletter promotion after newsletter promotion Streeter said: “There’s still a long way to go to clear the backlog and fully meet demand, but with oil-producing nations turning on the taps and repairs to infrastructure ongoing, oil prices are on the decline. Energy-