Global oil markets extended their decline Tuesday, with Brent crude falling to its lowest level since the day before the Iran conflict erupted, as traders grew increasingly confident that energy supplies from the Middle East would continue flowing after a U.S.-Iran agreement reopened the Strait of Hormuz.
Brent crude, the international benchmark, dropped more than 3% to trade below $72.97 a barrel during morning trading, while West Texas Intermediate hovered near $70 a barrel. The retreat marks a sharp reversal from the price spikes that rattled markets during the height of the conflict, when concerns over disrupted shipping routes fueled fears of a broader energy shock.
The latest selloff reflects growing confidence that the immediate threat to one of the world's most important maritime chokepoints has eased. Roughly one-fifth of global oil shipments pass through the Strait of Hormuz, making any disruption there a major concern for energy traders and policymakers.
Market sentiment improved significantly after Washington and Tehran signed a memorandum of understanding aimed at ending hostilities and restoring commercial traffic through the waterway. The U.S. decision to ease restrictions on Iranian oil sales further reduced concerns about global supply shortages.
The recovery in maritime activity is now moving beyond oil markets. The International Maritime Organization (IMO), the United Nations agency responsible for shipping safety, announced the launch of a major operation to evacuate thousands of seafarers who remained stranded in the region during the conflict.
IMO Secretary-General Arsenio Dominguez said the agency had secured the conditions necessary to begin the effort. "We will begin the implementation of the evacuation plan for over 11,000 seafarers still stranded in the region," Dominguez said.
The operation represents one of the largest coordinated maritime movements since the conflict began. At its peak, the IMO estimated approximately 20,000 seafarers were trapped aboard vessels in and around the Strait of Hormuz after Iran imposed restrictions on maritime traffic and security conditions deteriorated.
According to the agency, dozens of incidents involving commercial shipping were recorded during the fighting. Maritime authorities have spent months developing contingency plans while waiting for sufficient security guarantees from regional governments and military forces operating in the area.
The evacuation will proceed gradually rather than through a mass departure of vessels. Officials said ships will be assigned specific transit windows to reduce congestion and lower the risk of accidents in one of the world's busiest shipping corridors. Oman's defense ministry indicated the operation would be conducted in multiple phases.
Navigation procedures have also been adjusted. The traditional Traffic Separation Scheme, the routing framework used in the Strait of Hormuz since 1968, is currently considered too risky because of lingering hazards left behind by the conflict.
