Oil prices have fallen to levels last seen before the start of the Iran war as tankers begin passing through the Strait of Hormuz.
Brent crude, the international benchmark, dipped 1.7pc to $72.52 a barrel, below its price on Feb 27, the day before the U.S. and Israel first launched strikes on Iran.
U.S. produced West Texas Intermediate fell over 1.3pc to $69.41 a barrel.
Oil prices have been sliding since the U.S. and Iran finally began peace talks, bolstering hopes of a lasting agreement to end the conflict and encouraging more oil tankers to pass through the strait of Hormuz.
The decline comes amid a broader rally in markets, with Asian shares surging overnight after U.S. chip giant Micron revealed strong earnings and forecasts. Meanwhile, peace talks between the US and Iran in Switzerland have also taken the pressure off prices.
Crude has fallen more than 16pc since mid-June when U.S. President Donald Trump said an agreement with Iran had finally been reached, setting out a path to end the war.
It had rocketed as high as $126 in April after the conflict closed the Strait of Hormuz, the waterway along the Iran coast where a fifth of the world’s oil and gas exports usually pass.
