Oil Prices Fall Over 4% As Hormuz Tanker Traffic Restarts

Oil’s retreat may ease India’s import and inflation pressures, although fresh attacks or shipping restrictions could quickly raise crude, freight and transport costs again.

Key Highlights
 

• Brent oil fell 4.34% to $71.99 a barrel for trade closing June 26, 2026. WTI fell 3.74% to $69.23.
   
• In light of US-Iran tensions, three tankers previously unable to pass through the Strait of Hormuz transported 5 million barrels on June 24.

What Caused Prices to Drop Again? 

Oil prices fell again on June 26, 2026, as more tankers began moving through the Strait of Hormuz. Reuters said Brent was down $3.27 and ended the day at $71.99 a barrel.

WTI also had a rough session. It dropped $2.69 and closed at $69.23. Looking at the full week, Brent was down 10.86%, while WTI lost 9.62%.

The decline reduced immediate fears of a Gulf supply shortage. India could gain through a lower import bill, softer inflation and reduced pressure on the rupee. The relief remains fragile because another vessel attack, mine warning or shipping pause could lift crude and insurance costs.

The latest figures show how quickly traders removed part of the geopolitical premium after stranded Gulf cargoes started moving.

US Energy Secretary Chris Wright said the 20 million-barrel movement was close to normal oil-flow levels. Vessel traffic, however, remained below pre-conflict numbers.

What Could Cheaper Oil Mean For Indian Families?

Cheaper crude can cut expenses for airlines, truck operators, factories and fuel sellers. That may also help keep delivery costs down, which can stop food and everyday goods from becoming costlier too quickly. Still, petrol and diesel prices may not fall straight away. Taxes, the rupee, refinery charges and older fuel stock all come into the final pump price.

A PIB update from the Petroleum Ministry, published on March 11, 2026, under Release ID 2238525, said India used about 55 lakh barrels of petroleum each day. It also said the country was buying crude from nearly 40 nations.

India’s crude diversification offers protection, but LPG supplies remain heavily exposed to Hormuz.

Why Are Experts Still Cautious?

Reuters reported on June 24 that VL Breeze, Plata Carrier and Prudent Warrior carried a combined 5 million barrels out of Hormuz. Only 8 of 26 stranded tankers had departed. Saudi Aramco also restarted Ras Tanura loadings after nearly 4 months.

PVM analyst Tamas Varga said traders were preparing for possible oversupply. The US Energy Information Administration said Hormuz handled 20 million barrels daily in 2024, more than one-quarter of global seaborne oil trade and around one-fifth of global LNG trade.

LoansJagat’s analysis is that sustained cheaper crude could leave households with more room for EMIs and essential expenses. A previous LoansJagat report tracked the reopening and its possible impact on India.

Conclusion

India may benefit if crude remains lower and tanker movement continues without disruption.

Any fresh Hormuz closure could quickly erase the relief.

FAQs

1. Why Did Crude Oil Prices Drop?
More tankers began sailing through Hormuz again. That eased worries about an immediate supply crunch and pulled international oil prices lower.

2. Could Petrol Prices Come Down In India?
Possibly, but not straight away. Fuel prices also depend on taxes, the rupee’s value, transport costs and what refiners paid for earlier supplies.

3. Why Is Fuel Still Costly When Global Crude Becomes Cheaper?
A fall in crude does not reach pumps overnight. Taxes form a large part of the bill, while currency changes, freight and old stock also affect prices.

4. Who Sets Petrol And Diesel Prices In India?

Oil companies work out the daily price. They look at crude costs, the rupee, refinery bills, transport charges, dealer commission and government taxes.