Global oil prices have fallen by nearly 4 per cent, offering a potential relief signal just days before the Energy and Petroleum Regulatory Authority (EPRA) releases its June-July fuel review on June 14.

🇰🇪 Breaking It Down

According to reports by  Reuters and  CNBC , U.S. crude oil futures dropped 3.7 per cent to Ksh11,372 or USD87.89 per barrel on June 10, while Brent crude, the international benchmark, slid 3.19 per cent to settle at Ksh11,806 or USD91.24.

The drop comes amid easing tensions in the Middle East for the last two months, before the June 9 escalation in the conflict, a region whose instability has kept fuel markets on edge for months.

The Strait of Hormuz, a critical oil shipping route that was severely disrupted earlier this year, has been seeing a rise in traffic for the past weeks during the ceasefire between Iran, the U.S. and Israel.

📌 What You Need to Know

U.S. Energy Secretary Chris Wright confirmed the development, saying traffic through the strait was rising very meaningfully, with a sign of recovery experienced throughout the fuel chain globally.

The Strait of Hormuz has been at the centre of the global oil crisis since the U.S. and Israel struck Iran on February 28, sending prices surging by roughly 30 per cent.

Iran retaliated by attacking tankers and mining the Hormuz sea lane, triggering what analysts describe as the ‘biggest oil supply disruption in history.’

This week, tensions flared again briefly after Iran breached the two-month ceasefire by launching missiles at Israel in response to Israeli strikes in Lebanon, sending prices spiking on Monday.

Israel struck back, but both sides confirmed a ceasefire shortly after, calming markets and contributing to Tuesday's price decline.

President Donald Trump, who has been pushing for a deal with Tehran, told reporters Monday that an agreement could come within two to three days.

📰 Source: Kenyans.co.ke