Oil Prices Fall To Lowest Level Since Iran-US War Began As Strait Of Hormuz Shipping Rebounds

Last Updated:June 25, 2026, 09:58 IST

The West Asia conflict led to Iran shutting the Strait of Hormuz, a key maritime route that handles around one-fifth of global oil supplies.

US oil prices have fallen to their lowest level since the start of the Iran war, reversing earlier gains that came after fighting disrupted shipping through the Strait of Hormuz.

Prices had surged when escalating tensions forced shutdowns in the key waterway, but have since declined in recent days amid optimism over a US-Iran agreement that could reopen the strait.

Traffic through the Strait of Hormuz has also increased sharply, with activity doubling over the past 24 hours to its highest level since late February, according to MarineTraffic data.

The West Asia conflict led to Iran shutting the Strait of Hormuz, a key maritime route that handles around one-fifth of global oil supplies. The disruption triggered one of the biggest oil shocks on record, pushing gasoline prices higher.

Over the weekend, US and Iranian delegations arrived at the Bürgenstock resort in Switzerland to begin talks aimed at a war-ending agreement, based on a memorandum of understanding signed by both sides last week.

As part of that memorandum, Iran is expected to permit the resumption of commercial shipping through the strait, with no tolls for the next 60 days.

In a social media post on Wednesday, President Donald Trump said Iran told him that there would be “no tolls, no insurance costs" and “no other charges of any kind" for ships travelling through the strait. He added that claims to the contrary are “troublemaking" false reports.

News world Oil Prices Fall To Lowest Level Since Iran-US War Began As Strait Of Hormuz Shipping Rebounds

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