June 19 (THEWILL) — Oil prices fell sharply on Thursday, dropping to their lowest levels since the outbreak of the US-Iran conflict as easing geopolitical tensions improved expectations for global crude supply.
According to Reuters, Brent crude futures fell by $1.53, or 1.9 percent, to $78.02 per barrel, while U.S. West Texas Intermediate (WTI) crude declined by $2.22, or 2.9 percent, to $74.57 per barrel.
Brent touched its lowest level since the first trading session after the initial US-Israeli strikes on Iran, while WTI slipped to its weakest level since early March. The decline followed an interim agreement between the United States and Iran, which raised hopes that Iranian crude exports could increase in the coming months.
“The selloff extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels following the recent U.S.-Iran memorandum of understanding”, IG market analyst Tony Sycamore said.
The agreement begins a 60-day negotiation period during which Iran is expected to allow toll-free passage through the Strait of Hormuz, one of the world’s most important oil and gas shipping routes. The deal also aims to restore shipping activity through the waterway to full capacity within 30 days.
Analysts expect oil flows through the Strait of Hormuz to recover gradually, although they caution that prices may not decline significantly as global demand remains strong.
Goldman Sachs projects that Gulf oil exports will return to pre-conflict levels by the end of July, with crude production recovering fully by October.
Despite the recent price decline, BNP Paribas said it does not expect oil to return to pre-conflict levels, describing $75 per barrel as a durable price floor due to persistent supply constraints and resilient global demand.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
