June 30 2025 – International Desk
Global crude oil prices fell sharply on Monday, sliding below $67 per barrel, following Iran’s unexpected decision not to block the strategic Strait of Hormuz, easing concerns over a potential supply disruption in the Gulf region.
The development comes amid heightened geopolitical tensions in the Middle East. However, Iran’s decision to maintain open access through the waterway, which handles about 20% of global oil trade, has calmed market jitters and triggered a sharp price correction.
Industry analysts attribute the crash to a mix of diminished risk premium, a surplus in global inventories, and moderate demand projections from top consumers such as China and India.
“The market had priced in a significant risk of supply chain disruption through Hormuz. Iran’s restraint has now taken that pressure off,” said Mikhail Levin, a commodities analyst at Global Energy Review.
Brent crude futures dropped by over 5%, falling to $66.74, while West Texas Intermediate (WTI) slid to $64.88, marking one of the steepest single-day declines in recent months.
Oil-dependent economies, including Nigeria, may face fiscal pressures if the downward trend persists, as the current benchmark for the country’s 2025 budget is predicated on an oil price of $73 per barrel.
Energy experts suggest the market could remain volatile depending on evolving geopolitical developments and the next moves by the OPEC+ alliance, which may convene an emergency meeting to consider production cuts.
The Strait of Hormuz remains a critical chokepoint in global energy logistics, and Iran’s decision, while temporarily easing supply fears, underscores how geopolitical decisions in the Gulf region can swiftly reshape global commodity markets.
