Oil prices dropped sharply on Thursday, returning to levels seen before the outbreak of the U.S.-Iran conflict in February.
The decline followed easing tensions in the Middle East and improving confidence in global oil supply routes.
According to market data reported on Thursday, crude oil prices fell to about $72 per barrel.
The price had previously surged to around $120 per barrel during the height of the conflict.
Brent crude futures for August delivery declined by $1.06, or 1.44 per cent.
The benchmark traded at $72.68 per barrel by 0639 GMT.
U.S. West Texas Intermediate also recorded losses during the trading session.
WTI crude fell by 76 cents, representing a 1.08 per cent decline, to $69.58 per barrel.
Reports indicated that oil prices had already begun retreating earlier in the week.
Crude reportedly fell from $76.75 per barrel on Tuesday to $73.50 on Wednesday.
Prices had climbed sharply during the conflict as fears grew over possible disruptions to shipping through the Strait of Hormuz.
The strategic waterway handles a significant share of global oil exports.
Market analysts attributed the latest decline to increased supply from the Middle East.
Expectations of higher Iranian oil sales also contributed to the downward pressure on prices.
Iran is expected to boost exports following relief from some U.S. sanctions.
Traders also reacted positively to developments surrounding the recent U.S.-Iran agreement.
The deal reduced fears of disruptions along major energy transportation routes.
Reports of increased shipping activity through the Strait of Hormuz further reassured markets.
An initial agreement reached last week paved the way for the resumption of normal maritime traffic.
The accord reportedly established a 60-day negotiation period to address broader issues, including Iran’s nuclear programme.
Industry observers believe oil shipments will continue flowing through the waterway despite lingering uncertainties.
On Wednesday, Omani authorities introduced temporary routes to ease tanker movements through the strait.
The measures were coordinated with the International Maritime Organization to improve navigation and reduce congestion.
Despite the recent decline, traders remain cautious about future developments.
Market participants continued monitoring shipping activities and regional security conditions.
Any escalation in tensions could still affect global energy markets.
United States President Donald Trump also commented on the development on Tuesday.
According to Trump, a record volume of oil passed through the Strait of Hormuz earlier this week.
“19 million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record,” he said.
“Oil prices are tumbling down, and the world is a much safer place,” the U.S. president added.
The latest market movement marks a significant reversal from the price spikes witnessed during the conflict.
For oil-importing countries, lower crude
prices could ease energy costs and reduce inflationary pressures.
However, oil-producing nations will closely watch developments as falling prices could affect revenue projections.
