Brent crude has dropped below the level seen before the outbreak of the US-Israeli war on Iran, as delayed oil shipments from the Gulf return to global markets and ease concerns over immediate supply shortages.

The international benchmark fell 1.8% to $72.40 a barrel on Thursday, its lowest level since before the United States and Israel launched military strikes against Iran in late February. According to the Financial Times, it was the first time Brent had traded below its pre-war closing price of $72.48 a barrel.

The decline follows the reopening of oil exports through the Strait of Hormuz after a preliminary agreement between the United States and Iran ended weeks of disruption to one of the world’s busiest energy shipping routes.

According to reporting by the Financial Times, more than one billion barrels of crude became stranded inside the Gulf during the conflict after exports were halted and producers cut output. The return of those supplies has added short-term pressure to prices.

Ship-tracking company Windward reported that 31 oil tankers departed the Gulf on Wednesday, almost 50% more than the previous day, indicating a rapid increase in exports as shipping resumed.

Market pricing suggests traders expect supply conditions to improve in the near term. According to the Financial Times, buyers are paying more for oil scheduled for delivery later this year than for immediate cargoes, a pattern that points to temporary oversupply in physical markets.

Oil prices surged to as much as $126 a barrel in March as fears grew that the conflict would severely disrupt global energy supplies. Since then, prices have steadily retreated as expectations of a prolonged war faded and exports gradually resumed.

The Financial Times also reported that some analysts believe the current weakness may prove temporary. Amrita Sen, founder of consultancy Energy Aspects, said the market had largely ignored the low level of global inventories and suggested crude could find support between $80 and $90 a barrel once the backlog of Gulf exports has cleared.

The United States has also moved to support the restart of oil flows. According to the Financial Times, the Trump administration introduced a 60-day suspension of sanctions on Iranian oil exports while encouraging producers to restore shipments.

HT