The price of oil has fallen back to levels not seen since before the Iran war, handing hard-pressed UK businesses the prospect of cheaper fuel as traffic through the critical Strait of Hormuz shipping lane gradually resumes.
Brent crude, the global benchmark, briefly dipped below $72.48 (£55) a barrel, the level it sat at the day before the United States and Israel launched their attacks on Iran on 28 February, before edging back up to $73.23.
Energy markets have endured a torrid few months since Tehran retaliated by effectively closing the strait, a waterway that carries a substantial share of the world’s seaborne oil and gas. For the haulage, hospitality and agricultural firms that have watched their fuel bills balloon since the spring, the retreat in crude cannot come soon enough. Many smaller operators have spent the conflict simply trying to absorb costs they could not pass on, a squeeze Business Matters has tracked among hauliers, hotels and farms pushed into survival mode.
Crude has been falling steadily since 17 June, when Washington and Tehran signed a Memorandum of Understanding setting out a 60-day window for negotiations on Iran’s nuclear programme and other measures aimed at ending the war. Representatives from both sides met in Switzerland last weekend, talks that led the United States to partially lift sanctions on Iranian oil exports.
The number of vessels crossing the Strait of Hormuz has risen sharply since the agreement was struck, according to maritime intelligence firm Kpler. Its latest figures suggest 284 vessels made the transit from 18 June, the day after the deal was signed, although that remains well below the pre-conflict average of around 138 crossings a day. The ships passing through in recent days have included those carrying crude oil, liquefied natural gas, fertiliser and other goods, Kpler told the BBC.
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