Key Takeaways

• Four-day losing streak: Brent fell 0.5% to $73.38 per barrel, while WTI edged down 0.3% to $70.14 — both near pre-war levels.
• Brent at February 27 low: The global benchmark touched its lowest level since the day before the U.S.-Iran conflict began.
• Prior session’s 4% crash: Wednesday’s sharp selloff extended Thursday’s pressure.
• War premium nearly erased: Prices have reversed most of the geopolitical risk premium built up during the conflict.
• Hormuz flows near normal: U.S. Energy Secretary Chris Wright said roughly 20 million barrels exited the strait over the past 24 hours under military protection.
• Stranded tankers resuming: Several vessels previously trapped in the Gulf have restarted voyages, per shipping data.
• Iranian exports recovering: Temporary U.S. sanctions relief and easing regional hostilities are raising expectations of additional Iranian supply.
• Peak above $120 now distant: Brent had surged above $120 at the height of the Hormuz crisis — now almost entirely reversed.
• Analysts warn of risks: Any renewed Iran-U.S. tensions could quickly reignite supply fears.
• EIA inventory data mixed: U.S. commercial crude stocks fell 6.1 million barrels to 412.1 million — the lowest since January 2025 and a larger draw than expected.
• Cushing hits 2014 low: Stocks at the WTI delivery hub fell about 1.1 million barrels to their lowest level in over a decade.
• Gasoline and distillates build: Gasoline rose 2.1 million barrels; distillates including diesel and heating oil increased 3.1 million barrels.

Oil prices fell for a fourth consecutive session on Thursday, sliding to their lowest levels since before the Iran war as concerns over disruptions to Middle East crude supplies continued to ease amid improving traffic through the Strait of Hormuz.

As of 20:24 ET (00:24 GMT), Brent oil futures expiring in August fell 0.5% to $73.38 per barrel, while West Texas Intermediate crude futures edged down 0.3% to $70.14 per barrel.

Both contracts slipped nearly 4% in the previous session. Brent prices fell to their lowest level since February 27 — a day before the U.S.-Iran conflict began.

Prices have now erased most of the geopolitical risk premium that had built up during the war.

Hormuz Flows Near Normal Under Military Protection

The market remained focused on the Strait of Hormuz — a key artery for global energy trade through which roughly a fifth of the world’s oil consumption passes.

U.S. Energy Secretary Chris Wright said crude flows through the waterway were close to normal levels, with about 20 million barrels exiting the strait over the past 24 hours under military protection.

Reports citing shipping data showed more vessels resuming transit through the strait after weeks of disruptions, while several tankers previously stranded in the Gulf have restarted their voyages.

Investors have also been reassured by expectations that Iranian oil exports could recover following temporary U.S. sanctions relief and an easing in regional hostilities — reducing fears of a prolonged supply crunch.

The latest decline marks a dramatic reversal from earlier this year, when the closure and disruption of Hormuz traffic helped push Brent crude above $120 a barrel at the height of the crisis.

Despite the recent selloff, analysts cautioned that risks remain. Any renewed tensions between Iran and the United States could quickly reignite supply fears.

EIA Inventory Data Mixed

Adding to the bearish tone, traders assessed mixed U.S. inventory data released by the Energy Information Administration on Wednesday.

U.S. commercial crude inventories fell by 6.1 million barrels in the week ended June 19 to 412.1 million barrels — the lowest level since January 2025 and a larger draw than analysts had expected.

Crude stocks at the Cushing, Oklahoma delivery hub also declined by about 1.1 million barrels to their lowest level since 2014.

However, gasoline inventories rose by 2.1 million barrels, and distillate stocks — including diesel and heating oil — increased by 3.1 million barrels.