Global oil prices fell to close to their pre-Iran war level after the United States issued temporary authorization for sales of Iranian oil and refined products in the international market and some ships began moving through the Hormuz Strait. File photo by Brian Kersey/UPI | License Photo
June 25 (UPI) -- Oil prices fell to close to their pre-Iran war levels on Thursday, three days after the United States authorized Iranian oil sales on the international market for a 60-day period and U.S. negotiators and regional mediators said good progress had been made in talks to reach a final deal to end the war.
Brent crude, the global benchmark, has fallen by more than $8 a barrel since the start of the week, with the contract for August delivery trading at $72.26 a barrel in mid-morning trade in London. American crude for July delivery was changing hands at $68.19 a barrel, a fall of $7.38 since Monday.
Those prices were at $70.88 and $65.70, respectively, on Feb. 27, the day before the United States and Israel launched their airborne offensive on Iran, which in turn responded by effectively closing the Hormuz Strait, through which around 25% of global oil and gas supplies are exported.
Traffic through the strait has jumped sharply since the United States and Iran signed a 60-day Memorandum of Understanding last week and formal talks over the weekend yielded a maritime "hotline" to avoid incidents or miscommunication.
