Oil prices fall amid expectations of Iran negotiations and restoration of traffic through Hormuz

This is no longer just about removing the war premium from prices: current Brent quotes are below the levels recorded before the start of the war with Iran. Back on June 24, Reuters wrote that Brent closed at its lowest level since before the start of the war, and on June 30 the price dropped even lower.

At the same time, the “pre-war level” that analysts talk about refers primarily to physical supplies and traffic through the Persian Gulf. Goldman Sachs estimates that if the current pace of recovery continues, flows from the Persian Gulf could return to pre-war levels of about 23 million barrels per day by early July.

Market participants remain cautious due to ongoing attacks on ships, uncertainty surrounding negotiations and Iran’s announcement of its intention to seek changes in traffic routes through the Strait of Hormuz.