Global oil prices fell sharply following a conditional ceasefire agreement enabling the reopening of the Strait of Hormuz, a critical route for global energy shipments.
Benchmark Brent crude dropped 13 percent to $94.80 a barrel, while US‑traded oil declined more than 15 percent, settling at $95.75 per barrel.
Despite the decline, prices remain above pre‑conflict levels recorded on 28 February, when Brent crude traded near $70 a barrel before regional hostilities disrupted supply chains.
Supply Disruptions
Middle East energy supplies had been severely disrupted after threats against vessels using the strait, leading to significant increases in global oil and gas costs.
Several stranded tankers are now expected to pass through the reopened waterway during the ceasefire, offering temporary relief to markets dependent on Gulf energy exports.
Asian countries including India, Malaysia, and the Philippines have negotiated safe passage for vessels, while China confirmed multiple ships successfully crossed the strait during recent weeks.
Infrastructure Damage
Energy production in the Middle East remains limited, with analysts warning that full recovery will require confidence in lasting peace and extensive infrastructure repairs.
Iranian strikes on regional energy facilities caused significant damage, including attacks on Qatar’s Ras Laffan hub, reducing liquefied natural gas export capacity by 17 percent.
The hub’s operators estimate repairs could take up to five years, prolonging supply shortages and maintaining pressure on global energy markets despite the temporary ceasefire agreement.
