Oil Prices Slide to Pre‑Iran War Levels as Hormuz Route Revives

Sun Jul 12 2026 08:33:41 GMT+0000 (Coordinated Universal Time)

Brent crude dips below $72 a barrel, echoing the pre‑Feb‑2026 price before the US‑Iran conflict. Shipping resumes and sanctions ease as fuel costs fall.

Brent crude fell below $72.50 a barrel, matching the price seen before the US and Israel targeted Iran in late February. Following a memorandum of understanding signed on 17 June, US sanctions on Iranian oil were partially lifted, sparking a rise in ships traversing the Strait of Hormuz. Kpler data shows 80 vessels have crossed the channel since Monday, though the throughput remains below the pre‑war figure of more than 100 per day. In the United States, gasoline prices at the pump have declined to about $3.93 a gallon from a peak of $4.00, yet the administration accuses major oil companies of keeping retail fuel high. The UK competition watchdog responds that evidence of broad price gouging is lacking.

Oil Prices Slide to Pre‑Iran War Levels as Hormuz Route Revives

A man in a red hoodie refuels his car while keeping an eye on the price display — The Dallas Morning News via Getty Images

Brent crude briefly dipped below $72.48 a barrel – the level it was at the day before the US and Israel launched attacks on Iran on 28 February – before it steadied slightly at $72.63.

The dramatic drop in the price curve has followed a series of events that began when Iran effectively closed the Strait of Hormuz in response to those attacks. The channel’s closure disrupted the flow of oil and gas, pushing prices higher.

On 17 June, a memorandum of understanding between the United States and Iran was signed in Switzerland. The agreement called for a 60‑day window of talks on Tehran’s nuclear programme and other issues, and it included a partial lifting of sanctions on Iranian oil exports. This easing of restrictions has allowed more commercial vessels to navigate the strait.

Maritime intelligence firm Kpler reported that around 80 ships have crossed the Strait of Hormuz since Monday. The vessels include those carrying crude oil, liquefied natural gas, fertilisers and other commodities. However, the total still falls short of the pre‑war average of more than 100 ships daily.

The United States’ president has taken a different angle on oil pricing. In a statement from the Oval Office, Donald Trump ordered an investigation into major energy companies. He criticised them for "gouging" drivers despite the falling costs of crude.

The American Petroleum Institute answered that fuel prices at the pump do not move in lockstep with crude oil. Meanwhile, British energy firms are under scrutiny from the competition watchdog, which said last month there was no widespread evidence of unfair price hikes in the UK market.

In the US, the average price for regular gasoline fell to about $3.93 a gallon, down from $4.00 in April – the highest since 2022. Still, it remains above the pre‑Iran war baseline.

As shipping traffic through the Key Strait of Hormuz continues to pick up, the oil market and consumer fuel prices are poised for further adjustments in alignment with the evolving geopolitical landscape.