Oil price falls to lowest level since before US-Iran war
7 reported
According to a single-source report from The Guardian, the price of Brent crude oil has fallen to $72.24 per barrel, slightly below its level before the Iran war began. The decline is attributed to fears of an oversupply, ongoing US-Iran peace talks, and increased vessel traffic through the Strait of Hormuz. MarineTraffic data cited by CNN shows vessel traffic in the strait doubled over the previous 24 hours to its highest level since late February. Analysts cited by Bloomberg report that strategic inventory releases, a collapse in demand from China, and tankers leaving the Persian Gulf have contributed to a small oversupply. Asia-Pacific stock markets rose sharply, with Japan’s Nikkei up 4.6% and South Korea’s KOSPI up over 6%. Separately, the British Chambers of Commerce (BCC) conference is taking place, where business leaders are urging the next prime minister to ease burdens on firms to drive growth.
What’s reported
Brent crude oil fell to $72.24 per barrel, slightly below the $72.48 close on February 27, just before the Iran war started.
Oil prices surged during the conflict, peaking at $126.41 at the end of April, then fell through May and June as peace hopes rose.
Vessel traffic in the Strait of Hormuz doubled over 24 hours to its highest level since late February, per MarineTraffic data cited by CNN.
A combination of strategic inventory releases, a collapse in demand from China, and tankers leaving the Persian Gulf contributed to a small oversupply, according to traders interviewed by Bloomberg.
Japan’s Nikkei surged 4.6% and South Korea’s KOSPI rose over 6% on the oil price decline.
The BCC’s Global Annual Conference is being held, with Chancellor Rachel Reeves, Shadow Chancellor Sir Mel Stride, and others scheduled to speak.
Shevaun Haviland, BCC Director General, is expected to warn that the next prime minister should lift business confidence, not stifle it.
Key figures
Ipek Ozkardeskaya, senior analyst at Swissquote
Shevaun Haviland, Director General of the British Chambers of Commerce
Rachel Reeves, Chancellor of the Exchequer
Sir Mel Stride, Shadow Chancellor
Sir Ed Davey, Leader of the Liberal Democrats
Robert Jenrick, Reform Treasury Spokesperson
Andy Haldane, former Bank of England chief economist
Jim Reid, market strategist at Deutsche Bank
Sources: The Guardian
