Summary of this article
Crude oil prices returned to pre-war levels as Strait of Hormuz traffic improved
Brent and WTI fell over 3%, WTI hit a four-month low amid easing supply fears.
Kpler data showed rising vessel crossings, signaling recovery in key oil shipping route
After four months of war-driven volatility, crude oil prices have fallen back to pre-war levels as shipping traffic through the Strait of Hormuz has improved, easing fears of supply disruptions. Vessel movement through the Strait of Hormuz has increased following the agreement between the US and Iran to reopen the key shipping route. Although traffic remains below normal levels, officials said on June 25, 2026 that transit volumes have recovered significantly over the past week.
Data analytics firm Kpler confirmed that as many as 220 verified vessel crossings were recorded between June 22 and June 26, the highest weekly count since the conflict began in late February. Between June 15 and June 21, a total of 125 vessel transits were recorded. Tankers accelerated cargo movements during the period to move stored Gulf crude ahead of the expiry of the 60-day truce window.
Located between Iran and Oman, the Strait of Hormuz is one of the world’s most important energy corridors, handling nearly one-fifth of global oil shipments.
Crude oil prices started retreating after the US and Iran reached an interim agreement that eased restrictions on Iranian ports and enabled the country to resume crude exports. The agreement also removed restrictions on navigation through the Strait of Hormuz, a strategic waterway that had become a focal point during the conflict.
As part of the peace talks, the US granted Iran a 60-day licence to sell crude in international markets, adding to expectations of increased global supply.
Brent crude, the global benchmark, fell 3.84 per cent to $72.60 a barrel on June 27, close to the levels seen on February 27, a day before the US and Israel launched attacks on Iran.
Brent crude has eased nearly 17 per cent since the peace deal was announced earlier this month on June 14. The benchmark had surged as high as $118 a barrel during the initial days of the war, when Iran had effectively blocked ships from passing through the Strait.
Meanwhile, the US West Texas Intermediate (WTI) crude also fell 3.74 per cent, to $69.23 a barrel, the lowest level in four months.
The decline in crude prices has helped ease concerns over inflation and reduced fears of a prolonged economic fallout from the West Asia conflict, particularly for oil-importing economies such as India.
