Oil drops below $70 for first time since US-Iran war
What's the story
Crude oil prices have fallen below $70 per barrel for the first time since the start of the Iran-US war in late February 2026. The decline is due to improved trader sentiment over oil and gas supply through Gulf nations, following positive developments in Iran-US peace efforts. On Thursday, West Texas Intermediate (WTI) and Brent crude prices fell to $69 and $72 per barrel, respectively.
Political impact
US Senate passes resolution to end Iran war
In a related development, the US Senate passed a symbolic resolution on Wednesday, calling for an end to the war with Iran. The resolution directs President Donald Trump to withdraw US forces from hostilities with Iran. This political move comes amid the ongoing peace talks between the two countries and further influences global oil prices and market sentiment.
War consequences
Closure of Strait of Hormuz impacted prices
The closure of the Strait of Hormuz, a key oil chokepoint through which nearly 20% of global oil consumption passes, had impacted crude oil prices. The strait remained largely closed since the killing of Iran's Supreme Leader Ayatollah Ali Khamenei by US-Israeli forces. This disruption in trade flow and concerns over global energy supply had kept crude oil prices above $100 per barrel throughout the war.
Regional influence
Middle East's role in global oil market
The Middle East, which accounts for about a third of the world's crude oil production, plays a crucial role in global oil markets. The region's conflicts have a direct impact on oil prices and supply. However, with peace talks progressing and an evacuation plan for vessels stranded in the Strait of Hormuz being coordinated by Iran and Oman, traders are hopeful that global energy supplies will normalize soon.