Oil prices tumble record low as Strait of Hormuz shipping recovers

Oil prices have fallen to record low since the US-Iran conflict initiated in February. The prices tumbled to lowest levels in four months amid rising hopes for a breakthrough in negotiations aimed at sealing a permanent peace deal.

As reported, the brent crude fell more than 1 percent on Thursday to below $71 a barrel, returning the international benchmark to pre-war prices.

Brent futures for August delivery stood at $70.82 per barrel as of 04:30 GMT, lower than at any point since February 27, the day before the war began.

Following the latest drop, Brent prices are down more than 38 percent from their post-war peak of more than $126 a barrel on April 30.

The slide came after Qatar, a key mediator between Washington and Tehran, said that US and Iranian officials had made “positive progress” in indirect talks aimed at resolving issues related to their memorandum of understanding (MoU) on ending the war.

The founder of the Singapore-based oil market analysis provider, Vandana Hari said "a steady uptick in oil, flows out of the Gulf and cautiously optimistic geopolitical sentiment has driven prices lower."

“I expect crude to continue grinding lower until the backlog of stranded barrels has cleared, and prices could even swing into oversold territory,” said Hari.

She added that "the real test of normalization of Persian Gulf supply will come after that, necessitating fresh supply-demand balance recalibration.”

According to data from Marine Traffic, at least 40 vessels transited the strait on Tuesday, up from 27 crossings on Monday and 22 on Sunday.

While maritime traffic remains far below its pre-war level of roughly 130 daily crossings amid persistent concerns about safety in the waterway.