Oil prices have retreated to levels last seen before the start of the war in the Middle East as the crucial Strait of Hormuz reopens gradually and vessel traffic resumes following the U.S.-Iran peace deal.
Brent crude fell back to below $73 a barrel for the first time since the Iran war started on Feb. 28, down around 2% to $72.24 a barrel at one stage.
It sparks hope of easing cost-of-living pressures as prices begin retreating at the petrol pumps, thanks to the drops in the wholesale cost of crude.
The declines follow last week’s interim agreement to end the war and the reopening of the Strait of Hormuz, through which a fifth of the world’s oil and gas is normally shipped.
The U.S. and Iran signed a memorandum of understanding on Friday lasting 60 days, which has seen the U.S. partially lift sanctions on Iranian oil exports.
