Global oil prices extended their losses on Thursday, falling to their lowest levels in nearly four months as concerns over supply disruptions in the Gulf continued to ease following the Iran-US ceasefire.
At the time of writing, Brent crude futures were down $1, or 1.33 percent, trading at $72.7 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude fell $0.64, or 0.9 percent, to $69.7 per barrel. Both benchmarks touched their weakest levels since February 27.
Oil produced from reserves operated by the United Arab Emirates was trading near $66 per barrel, marking a decline of almost 5 percent over the previous 24 hours.
The latest drop follows a sharp selloff on Wednesday, when both Brent and WTI crude benchmarks lost nearly $3 per barrel as fears of prolonged supply disruptions in the Middle East faded.
Market sentiment improved further after shipping activity through the Strait of Hormuz recovered significantly. Recent terminal data indicated that more than 18–20 million barrels of crude oil passed through the critical trade route during the last 24 hours, bringing traffic close to pre-conflict levels.
The ceasefire agreement between Iran and the United States has helped stabilize global energy markets and restore confidence among shipping operators. The agreement also initiated a 60-day negotiation process aimed at addressing broader regional issues.
Officials involved in mediation efforts led by Pakistan and Qatar confirmed that the first phase of technical-level discussions has already concluded, raising hopes for a more permanent resolution to the conflict.
Analysts say continued progress in diplomatic talks and the normalization of oil flows through the Strait of Hormuz could keep downward pressure on crude prices in the coming weeks, provided no new geopolitical disruptions emerge.
