International oil prices dropped by nearly 2 percent on Thursday as renewed US-Iran hostilities delayed the full reopening of the Strait of Hormuz. The disruption has kept global fuel supply tight, but concerns over rising inflation and slowing economic activity have weakened demand expectations. Brent crude fell by $1.72, or 2.2 percent, to $76.30 per barrel, while US West Texas Intermediate (WTI) crude declined by $1.44, or 2 percent, to $72.08 per barrel.

Before the conflict, about 20 percent of global oil supply passed through the Strait of Hormuz. The latest escalation followed US strikes on Iran’s southern and eastern provinces, prompting retaliatory attacks by Iranian forces on US military infrastructure in Gulf countries. The three-week ceasefire agreement between the two sides is now under renewed strain.

Analysts from Macquarie Group and Goldman Sachs noted that while tensions remain high, both nations face economic and political constraints. Qatar, Turkey, and Oman urged restraint and a return to diplomacy, as tanker traffic through the strait has fallen below 70 percent of normal levels due to renewed attacks.