Oil prices extended their decline on Wednesday as concerns over potential disruptions to global energy supplies eased, with Brent crude falling to its lowest level since before the start of the U.S.-Iran conflict.
International benchmark Brent crude futures for August delivery dropped 1.7 percent to US$75.79 a barrel, marking the lowest level since February 27, one day before the U.S. and Israeli strikes on Iran that triggered fears of major supply disruptions.
U.S. West Texas Intermediate (WTI) crude futures also declined 1.7 percent, trading at US$71.98 a barrel.
The decline came as markets responded to signs that shipping disruptions through the Strait of Hormuz, a critical route for global oil shipments, could ease.
Investors have been closely monitoring developments around the waterway since the conflict raised concerns that restrictions on tanker movements could disrupt energy supplies and push prices sharply higher.
More Read
However, reports that some oil tankers affected by the crisis could resume movement helped reduce fears of a prolonged supply shock.
Oil prices have also been pressured by uncertainty over the details and durability of diplomatic efforts between the United States and Iran.
The two countries have provided conflicting accounts of elements of a reported agreement, including issues related to nuclear inspections and control of the Strait of Hormuz.
Meanwhile, U.S. President Donald Trump criticised oil companies over gasoline prices, arguing that consumers were not benefiting enough from the recent decline in crude prices.
“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil,” Trump said in a post on Truth Social.
He accused companies of “gouging” consumers and said he had instructed the U.S. Department of Justice to investigate the issue.
“Gasoline prices better start going down a lot faster than what I’m seeing,” he said.
The U.S. Department of Justice had not immediately commented on the matter.
Karen Young, a senior research scholar at the Columbia University Center on Global Energy Policy, described Trump’s comments as largely political, saying gasoline prices were influenced by several factors beyond crude oil costs.
More Read
“That’s not really how gasoline prices work in the U.S.,” Young told CNBC, pointing to additional factors such as state and local fuel taxes that affect prices at the pump.
Analysts said the recent fall in oil prices reflects a combination of reduced geopolitical risk, easing supply concerns and investor caution over global demand.
The market remains focused on developments in the Middle East, where any escalation affecting major shipping routes could quickly change the outlook for energy prices.
The Strait of Hormuz remains one of the world’s most important oil transit points, with disruptions there capable of affecting global crude markets.
For now, however, traders appear to be pricing in a lower likelihood of immediate supply interruptions, pushing crude prices back toward levels seen before the conflict began.
