Oil prices declined on Thursday, falling to their lowest levels since before the Iran conflict began, as expectations of increased Middle Eastern supply outweighed concerns about global demand.
Brent crude futures for August delivery dropped $1.08, or 1.46%, to $72.66 per barrel by 0952 GMT, while U.S. West Texas Intermediate (WTI) crude fell 84 cents, or 1.19%, to $69.50 per barrel.
Both benchmarks touched their lowest levels since February 27. U.S. Energy Secretary Chris Wright said at an industry forum that oil flows through the Strait of Hormuz had nearly returned to pre-conflict levels, with more than 20 million barrels passing through the vital shipping route over the previous 24 hours.
Wright noted, however, that a full return to normal operations could take several weeks, as the strait still requires demining efforts.
According to UBS analyst Giovanni Staunovo, most of the increase in Gulf oil traffic has come from outbound shipments, with vessels exiting the Strait of Hormuz.
