Oil prices fall back to prewar levels after U.S.-Iran breakthrough

Global oil prices fell again on Thursday, with Brent crude briefly dipping below $72.5 a barrel before settling around $72.6, the lowest level seen since before the war between the United States and Iran. The drop followed reports of progress in diplomatic talks between Washington and Tehran and a partial easing of sanctions on Iranian oil exports.

After the sides signed a memorandum of understanding, representatives met in Switzerland for talks aimed at ending the fighting. The U.S. move to ease some restrictions on Iranian oil shipments boosted optimism in energy markets and sent prices lower.

At the same time, shipping through the Strait of Hormuz has started to recover after months of disruption. The strategic waterway carries a major share of global oil and gas supplies, and maritime tracking companies said the number of vessels crossing it has risen sharply in recent days, including oil tankers, LNG carriers and other commercial ships.

Officials involved in the talks said the two countries created a dedicated communication channel to prevent incidents and misunderstandings at sea and to help ensure safe passage in the area. The U.S. Navy also issued new guidance for safer shipping routes. Even so, traffic remains below normal, with more than 100 ships a day using the strait before the war and hundreds still waiting in the Gulf. Consumers have yet to see a major drop in fuel prices, and President Donald Trump ordered a review of major energy companies, saying cheaper oil is not being reflected enough at the pump.