Crude Oil Prices Fall to Pre-Middle East Crisis Levels as Supply Fears Ease

KUALA LUMPUR, JUNE 2026 — Global crude oil prices have fallen back to levels recorded before the Middle East crisis, as market confidence improves following signs of stabilising supply routes and easing geopolitical pressure.

Brent crude futures are now trading near US$72 per barrel, while the United States benchmark West Texas Intermediate, or WTI, has slipped below US$70 per barrel.

As of 5pm yesterday, Brent crude closed at US$72.41, down 1.82 percent from US$75.70 on Wednesday. WTI crude also declined to US$69.25 from US$71.90.

The price movement marks one of the clearest signs that global oil markets are beginning to normalise after weeks of volatility linked to tensions in the Middle East.

Senior lecturer at the Department of Economics and Financial Studies, Faculty of Business and Management, Universiti Teknologi MARA, Dr. Mohamad Idham Md. Razak, said the fall in oil prices could bring mixed effects to Malaysia’s economy.

On one hand, lower global oil prices may help reduce inflationary pressure, stabilise industrial and logistics costs, and ease the government’s domestic fuel subsidy burden.

However, as Malaysia is also an oil-producing country, a prolonged decline in crude prices could reduce national revenue from the petroleum sector.

Dr. Mohamad Idham said crude oil prices may still have room to fall further if global supply continues to recover while demand remains moderate.

He said it is possible for global crude prices to test the mid-US$60 per barrel range by the third quarter of this year, depending on how quickly the Strait of Hormuz fully reopens and whether Iran increases oil sales following temporary easing of restrictions by the United States.

The Strait of Hormuz remains one of the world’s most important oil shipping routes. Any disruption in the area often creates strong pressure on global crude prices due to concerns over energy supply.

According to the report, shipping traffic through the strait has gradually resumed and commodity flows are moving closer to normal capacity, estimated at around 20 million barrels per day.

Market confidence has also been supported by expectations that Iran may increase oil sales, while Oman has opened a temporary route to help oil tankers exit the Strait of Hormuz with coordination from the International Maritime Organization.

Analysts from Macquarie have also projected that average prices for Brent and WTI could move lower in the third quarter, with Brent potentially reaching around US$67 per barrel and WTI around US$62 per barrel.

Although the United States Energy Information Administration reported that US crude stockpiles fell to their lowest level since 1984 due to strong refinery demand, the market response remained limited.

Analysts said traders are currently paying closer attention to diplomatic developments, supply stability and future management of the Strait of Hormuz involving Iran, Iraq and Gulf countries.

For Malaysia, the latest oil price decline could bring short-term relief to consumers and businesses through lower cost pressure. However, the government will also need to monitor the impact on energy-related revenue if prices remain low for an extended period.