Oil Plunges to $72.28, Below Pre-Crisis Levels, as Hormuz Normalization Priced In
Key Facts
Deepening the geopolitical-driven rout, oil prices have extended their slide below pre-US-Iran conflict levels. According to reports, Brent crude fell to $72.28 per barrel in recent trading, posting a weekly loss of over 10% and a monthly loss of over 21%, as the Strait of Hormuz detente gathers pace.
The decline follows President Trump's statements on the removal of shipping tolls, prompting ING to note that markets are pricing in a swift normalization of traffic through the strategic waterway that handles 20% of global consumption. Separately, market data showed broad Asian currency weakness against a dollar index near 101.50 on US rate hike expectations, while the Indian rupee found support from RBI intervention in the 94.25-94.30 range.
Traders should watch for new support levels after the breach of the previously cited $74.50 floor. The upcoming EIA Weekly Petroleum Status Report on July 1, 2026 remains a catalyst, along with any official confirmation from Tehran on the final navigation arrangements, while a strong dollar continues to weigh on commodities.
Latest Updates · 1
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Update: US Secretary of State Marco Rubio commenced a diplomatic tour of the UAE, Kuwait, and Bahrain on June 23, 2026, aimed at reassuring regional allies following the deal. The visit addresses growing concerns over the implications of the US-Iran understanding on regional security, potentially adding a new layer of complexity to geopolitical risk assessments in energy markets.