Crude oil prices plunged more than 10% last week, returning to pre-war levels by Friday, June 26, 2026. The rebound in shipping flows through the Strait of Hormuz boosted optimism about supply recovery. Brent crude fell just below $72 per barrel—the lowest since February 27—on accelerated cargo movements through the strategic waterway.
WTI Drops Below $70
Meanwhile, U.S. West Texas Intermediate (WTI) crude slipped below $70 per barrel on Friday, closing at $69.20—a nearly 4% daily loss. Both Brent and WTI recorded weekly declines exceeding 10%, marking their steepest drop in a month.
Supply Recovery Gains Momentum
Before Friday night’s exchange of fire between the U.S. and Iran, oil and liquefied natural gas (LNG) shipments through the Strait of Hormuz had increased. More tankers crossed the maritime corridor following progress toward a U.S.-Iran peace agreement. Gulf exports have now recovered to roughly 75% of pre-war volumes.
A key signal of regional supply expansion came as Saudi Arabia resumed loading tankers at its Ras Tanura terminal—the kingdom’s largest oil export facility. Producers across the Middle East, including the United Arab Emirates, Kuwait, and Qatar, are also ramping up output despite challenges securing enough tankers to transport the additional crude awaiting market entry.
Iraq is seeking a higher OPEC production quota to recapture oil sales lost during the conflict.
Tensions Resurface
Despite the supply gains, geopolitical tensions flared again when U.S. President Donald Trump accused Iran of violating the ceasefire by launching drone attacks against vessels in the Strait of Hormuz.