Oil Prices Slam to Pre‑Iran War Levels as Strait of Hormuz Traffic Rebounds

Fri Jul 10 2026 16:47:53 GMT+0000 (Coordinated Universal Time)

Brent crude drops to its lowest since before the Iran war as shipping through the Strait of Hormuz resumes, sparking fresh moves in fuel markets.

Brent crude fell to $72.48 a barrel—the first time it has touched that level since before the Iran war—reflecting the resumption of traffic in the Strait of Hormuz following a US‑Iran memorandum of understanding. The MOU, signed on 17 June, lifted partial sanctions on Iranian oil, leading to a sharp fall in global oil prices and a wave of shipping traffic through the vital waterway. Despite the uptick in vessels, the flow remains below pre‑war highs and still sits at around 80 ships per day. The drop in crude has not translated immediately into lower retail fuel prices; US regular gasoline averages $3.93 a gallon, while UK fuel markets face scrutiny over alleged price gouging. Energy analysts say the market remains volatile, and the next weeks will show how quickly resolved shipping routes can influence global prices.

Oil Prices Slam to Pre‑Iran War Levels as Strait of Hormuz Traffic Rebounds

Brent crude fell below $72.48 a barrel, the lowest level seen since before the 2024 Iran war, as shipping traffic through the Strait of Hormuz slowly picks up after the US‑Iran memorandum of understanding.

The benchmark price briefly slipped under the old pre‑war floor before stabilising at about $72.63, signalling renewed confidence in a return to normal market rhythms.

Oil and gas shipments have been on a turbulent ride since Tehran shut the strait in response to the attacks on 28 February. The new 60‑day MOU, agreed on 17 June, set a framework for talks on Tehran’s nuclear programme and a broader cease‑fire, and led to the US partially lifting sanctions on Iranian oil exports.

Maritime intelligence data from Kpler shows the number of vessels transiting the strait has climbed since the agreement, with a mix of crude, LNG, fertiliser and other cargo carriers.

“There’s been a tremendous shift,” said Dimitris Maniatis, chief executive of Marisks, citing roughly 80 ships that crossed the strait since Monday after the first round of peace talks in Switzerland.

Iran allows a limited north‑west passage for approved vessels, while US Navy guidance points to a safe southern route that falls outside mine‑laden zones.

Yet the traffic volume still falls short of the more than 100 ships daily that flowed through the strait before the war. Many ships appear to be idling in the Gulf, awaiting clearance.

Fuel prices at service stations rose sharply during the war, topping $4 a gallon in April. Even as crude prices fall, the average US gasoline price sits at about $3.93 a gallon—higher than pre‑war figures but showing a clear downward trend.

In the capital, President Donald Trump ordered an investigation into major energy firms, accusing Shell, ExxonMobil and others of “gouging” motorists amid the price drop. The American Petroleum Institute defended the industry's pricing model, saying “fuel prices don’t move in lockstep with crude oil.”

British regulators have faced similar allegations about price inflation. A July competition watchdog report found no broad evidence of gouging, noting that profit margins remained largely unchanged between February and March.

(Interactive gauge showing oil price trends)