Sharp drop in crude oil prices; have rates returned to levels seen just before US-Iran conflict

Global crude oil prices have hit their lowest level in four months. On Thursday, the price of the global benchmark, Brent crude, briefly fell to $72.48 per barrel.

This level matched the price recorded on February 28—the day before the US and Israel launched an attack on Iran.

However, the price later rose slightly to $72.63 per barrel.

The world received this significant relief following the signing of a Memorandum of Understanding (MoU) between the US and Iran on June 17.

This shift occurred because shipping traffic has resumed in the Strait of Hormuz, a vital route for the global transport of crude oil and gas.

The route had been effectively shut down following attacks by Iran, causing sharp volatility in energy prices.

It is worth noting that the US and Iran are set to engage in 60 days of talks regarding issues related to the nuclear program and the cessation of hostilities.

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