Oil prices return to near pre-war levels in the Gulf

Oil prices have returned to levels close to those seen before the war, a week after the United States and Iran signed a ceasefire agreement. Brent crude closed on the evening of 24 June at USD 77/bbl, near its late-February level of USD 72/bbl. At its peak, Brent had climbed to USD 118/bbl. The market is betting on a return to normal, paying little heed to the risks that remain until a peace deal is reached between the United States, Iran and Israel. Insurance premiums for vessels transiting the Strait of Hormuz have halved since the ceasefire took hold, now averaging 2% of the value of insured cargoes, against 5% beforehand.