Easing Middle East tensions push crude oil prices down to Sh9,160 a barrel

Brent crude fell below Sh9,200 a barrel as rising global supply and easing US-Iran tensions continued to weigh on oil prices. (Photo: Magnific)

By Alfred Onyango
Thursday, July 2, 2026

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Brent crude traded at about Sh9,160 a barrel on Thursday as increased global supply and easing tensions between the United States and Iran reduced fears of disruptions to oil shipments through the Strait of Hormuz.

Benchmark oil prices extended their decline on Thursday, with Brent crude falling below $71 (Sh9,180) a barrel as rising global supply and easing geopolitical tensions between the United States and Iran weighed on the market.

According to Trading Economics, Brent crude traded at about $70.8 (Sh9,160) per barrel for most of Thursday.

The price is at its lowest level since late February, continuing a retreat from the earlier surge driven by fears of supply disruptions.

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The United Arab Emirates has restored exports to pre-conflict levels through alternative routes, while Iranian oil exports have climbed above 40 million barrels following the easing of naval restrictions.

Russia's record-high exports have also added to global seaborne inventories, putting further downward pressure on prices.

Political developments have also influenced market sentiment.

US President Donald Trump has welcomed progress in negotiations, while Qatar has indicated that another round of talks between Washington and Tehran could take place soon.

However, Iran has maintained its stance, insisting on retaining maritime administrative control over the Strait of Hormuz, a vital chokepoint through which about 20 per cent of global oil and liquefied natural gas shipments pass.

The current market trend marks a sharp reversal from earlier this year, when Brent crude surged to nearly $120 (Sh15,516) per barrel on fears of supply disruptions.

Before the latest escalation in tensions, oil prices had been trading in the $70 range, a level they are now gradually returning to as geopolitical risks ease.

Despite the recent decline, analysts have previously warned that oil prices could stabilise at higher levels, with forecasts of around $95 (Sh12,278) per barrel reflecting persistent geopolitical risks and tight global energy supplies.