Oil prices drop to unprecedented levels since Iran's war

The crude Brant fell temporarily under $272.48 (55 pounds) for barrels, the price was one day before the U.S. and Israel launched attacks on Iran on 28 February, before it reached 72.63 dollars, writes. BBC, broadcast Periscope.

Energy prices have been on a huge scale since Iran responded to the attacks by effectively closing the strait, a critical water route for oil and gas deliveries.

The cost of crude oil has dropped significantly since the US and Iran signed a Memorandum of Understanding (MOU) on June 17th, which set a 60-day period for negotiations on Tehran's nuclear programme and other measures to end the war.

Representatives from both sides met in Switzerland last weekend for talks to end the war, resulting in partially lifting sanctions on Iranian oil exports from the US.

The number of ships passing the Hormuz Strait has increased significantly since the signing of the Memorandum of Understanding, according to the marine intelligence firm Kppler.

Ships passing the waterway in recent days include those carrying crude oil, liquid natural gas (LNG), garbage and other goods, Kpler told the BBC.

The US and Iran had also formed a <x0 communications line"to prevent misunderstandings"aimed at certain transition of commercial ships through the Strait of Hormuz", Qatar and Pakistan said in a joint statement Monday.

There has been an extraordinary"changes"with many more ships using the straits in recent days, said Dimitris Maniatis, executive director of the Marisks, an advisory firm for maritime risks working on blocked ships in the region.

His company estimates that about 80 ships have passed the Hormuz Strait since Monday after the first round of peace talks between the US and Iran in Switzerland.

A limited number of ships could pass a northern crossing with the permission of Iranian authorities, he said.

The American Navy has also provided instructions for ships to travel along a southern road that is safe from mines and other obstacles that have been imposed since the war, Maniatis said.

But the number of ships crossing the strait is still below prewar levels when it was used by more than 100 ships a day.

Hundreds of ships still appear to be waiting in the Persian Gulf.

Fuel prices at the pump rose significantly when the Iran war began, and now the focus is how quickly they will fall.

The average price of regular gas in the US has dropped to about $3.93 for the galleon after it reached $4 per galone in April, the highest since 2022, but still far above pre-war levels.

US President Donald Trump ordered an investigation into large energy companies Wednesday, accusing Shell, ExxonMobil and other firms that"undermine"drivers by not lowering fuel prices even while oil costs dropped.

The oil prices have dropped so much and we are seeing nothing in the pump compared to what should be", Trump told reporters at the Oval Office.

The American Oil Institute, which represents the US oil and gas industry, said that fuel prices"do not move in the same step as crude oil".

British energy firms have faced similar charges of unfair fuel prices increase since the war with Iran.

The competition overseer in the United Kingdom said last month that there was no widespread evidence for this, adding that the average profit margins were"largely unchanged"between February and March.