Oil prices retreat as Strait of Hormuz reopens to tankers

International benchmark Brent crude fell 1.7% to below $72.50 per barrel on Thursday as easing supply concerns and recovering tanker traffic through the Strait of Hormuz weighed on crude markets, reversing wartime price spikes that had dominated trading since late February.

Tanker traffic resumes through strategic waterway

More than 20 oil tankers carrying approximately 35 million barrels of crude have transited the Strait of Hormuz since Washington and Tehran reached an agreement to reopen the route, according to trade-tracking firm Kpler. The vessels — mostly non-Iranian tankers — had been stranded in the Persian Gulf for over three months after Iran restricted traffic early in the conflict, and most cargoes are expected to reach Asian destinations by early August.

Security risks persist despite reopened route

The Strait of Hormuz handles a large share of seaborne crude and liquefied natural gas exports from Gulf producers, making it one of the world’s most critical energy corridors. Despite the resumption of traffic and falling prices, Iran’s Islamic Revolutionary Guard Corps Navy warned Thursday that safe passage would only be permitted through routes designated by Tehran, adding that vessels violating transit instructions would “face action.”

West Texas Intermediate crude declined 1.4% to around $69.40 per barrel, moving back toward levels seen before the war broke out in late February. The reopening marks a tentative step toward normalization, though military risks continue to threaten long-term stability in the region.