Global oil prices fell sharply on Thursday, reaching their lowest level in nearly three years. The decline came as investors grew more confident that crude oil supplies would continue to flow without major disruptions.
Brent crude fell 1.12% to $70.77 per barrel during morning trading. Meanwhile, U.S. West Texas Intermediate (WTI) crude dropped 1.33% to $67.67 per barrel.
According to market data, Brent crude has lost around 40% of its value during the second quarter of this year. That marks its biggest quarterly decline since 2020.
Analysts said improving diplomatic contacts have reduced concerns about global energy supplies. As fears of shipping disruptions eased, traders became more willing to sell oil, pushing prices lower.
Market sentiment also improved after recent comments from U.S. President Donald Trump, who said diplomatic discussions were progressing well. Investors interpreted the remarks as a positive sign for regional stability and global energy markets.
A more stable security environment has also increased expectations that shipping traffic through the Strait of Hormuz will continue without major interruptions. The waterway is one of the world’s most important routes for transporting crude oil and liquefied natural gas.
Analysts at consulting firm IG said markets have become increasingly optimistic about the recovery of normal maritime trade. They noted that improving confidence in global shipping has been the main factor behind the sharp fall in oil prices this quarter.
Meanwhile, Dutch bank ING reported that 11 oil tankers passed through the Strait of Hormuz on Tuesday. Although that figure was lower than the previous week’s average, the bank said tanker traffic remains steady.
ING added that vessels continue to enter the Gulf, suggesting that shipping companies remain confident about the security of the route. Stable maritime traffic has eased fears of supply shortages and contributed to the recent decline in oil prices.
Energy analysts say investors will continue monitoring geopolitical developments and shipping activity in the coming weeks. Any disruption to major export routes could quickly reverse the current downward trend in oil markets.
