Oil prices fall as concerns over Middle East supply ease

Brent crude for August delivery dropped by more than one dollar to trade near $72 per barrel, while US West Texas Intermediate (WTI) crude fell to around $69 per barrel

BEIJING/SINGAPORE: (UrduPoint/UrduPoint / Pakistan Point News-June 25th, 2026) The global oil prices continued to decline on Thursday, retreating to levels seen before the recent conflict involving Iran, as traders focused on improving supply prospects from the middle East and the gradual restoration of energy flows through key shipping routes.

Brent crude for August delivery dropped by more than one Dollar to trade near $72 per barrel, while US West Texas Intermediate (WTI) crude fell to around $69 per barrel. Both benchmark contracts touched their lowest levels in nearly four months as market sentiment shifted away from supply disruption fears.

Energy markets have come under pressure following signs that oil exports from the Gulf region are returning to normal. Increased shipments through the Strait of Hormuz and expectations of higher crude supplies from regional producers have helped ease concerns that emerged during the recent conflict.

Analysts said investors are increasingly confident that oil flows from the Middle East will continue without major interruptions, reducing the risk premium that had pushed prices sharply higher in previous weeks.

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Market participants are also monitoring the possibility of increased Iranian oil exports following diplomatic efforts aimed at reducing tensions in the region. Expectations of additional supply entering global markets have further weighed on prices.

Shipping activity through the Strait of Hormuz has improved significantly after a temporary agreement helped reduce hostilities and allowed maritime traffic to resume. Regional governments and international maritime authorities have also taken steps to facilitate the movement of oil tankers through the strategic waterway.

Despite data showing US crude inventories have fallen to multi-decade lows, traders largely ignored the figures, focusing instead on the improving supply outlook from the Middle East.

Industry analysts believe oil prices could continue to stabilise in the coming months if shipping routes remain open and regional tensions do not escalate again. The easing of supply concerns has prompted many market observers to forecast lower average oil prices during the third quarter compared with the previous quarter.