Oil prices sink below $67 as Iran backs

Global crude oil prices have plummeted below $67 per barrel, following Iran’s decision not to block the Strait of Hormuz in response to recent U.S. airstrikes, defusing fears of a global energy crisis and easing market volatility.

After surging to $77.08 on June 19 amid rising Middle East tensions, Brent crude (Nigeria’s crude grade) fell sharply to $70.52 on June 23 and dropped further to $66.17 by June 24, where it has since stabilised.

The price reversal came after U.S. forces bombed three Iranian military sites on June 22 in a bid to curtail Iran’s nuclear program. Fearing retaliation, markets braced for the possible closure of the Strait of Hormuz, a narrow waterway through which nearly one-fifth of the world’s oil flows.

Instead, Iran responded with a missile strike on a U.S. military base in Qatar, choosing not to disrupt the vital shipping route. The strategic restraint soothed fears of a major supply disruption, leading to a swift drop in prices.

“By choosing not to close the Strait, Iran signaled it doesn’t want a full-scale oil war,” said one geopolitical analyst. “It’s a game-changing move that restored some calm to an overheated market.”

The Strait of Hormuz remains a cornerstone of global oil logistics, bordered by Iran to the north and used by Saudi Arabia, Iraq, the UAE, and Kuwait to export over 90% of their oil. More than 20 million barrels of crude pass through it each day, according to the Energy Press.

To reduce dependency on the strait, Saudi Arabia operates the Petroline pipeline to the Red Sea port of Yanbu—offering a crucial alternative route in times of crisis.

The latest market turbulence follows months of volatility. Oil opened the year at $74.93 per barrel, climbed to $82.03 on January 15, then declined steadily through February and March amid tariff tensions, briefly rebounded in April, and surged again in June as hostilities between Israel and Iran intensified.

Traders had priced in the potential for a catastrophic supply shock—until Iran blinked.

“Iran’s decision not to weaponize the Strait was unexpected but welcome,” noted another expert. “It showed restraint in a moment of high tension, and the oil markets responded with relief.”

With crude now holding steady at just above $66, the immediate threat may have passed—but as long as tensions in the Gulf simmer, energy markets will remain on edge.