Oil prices fell to levels not seen before the recent Iran conflict on Thursday, as tanker traffic resumed through the Strait of Hormuz and boosted hopes for a recovery in Persian Gulf supplies, analysts said.
In early European trading, Brent crude fell 1.1% to $73.10 a barrel, while West Texas Intermediate futures were down 0.9% to $69.70 a barrel. The decline brought oil back to the range it traded at before hostilities between Israel and Iran disrupted shipping through the key chokepoint.
“The market is likely extrapolating the swift, thus far, recovery of Mideast supply and already pricing expected future surpluses,” Goldman Sachs analysts said. “Beyond the spot-price selloff, the market is increasingly challenging its prior assumption that long-dated prices need to incorporate a sticky security premium.”
According to Goldman Sachs, total Gulf oil exports have rebounded to 63% of normal levels, supported by increased tanker crossings through the Strait of Hormuz and a higher proportion of vessels that have resumed using their ship-tracking signals.
European energy stocks opened slightly lower amid the oil price decline. Italy’s Eni slid 1%. In London, BP dropped 0.8%, while Shell edged 0.5% lower. France’s TotalEnergies was 0.7% lower.
Separately, Castlelake’s latest 650 pence-a-share proposal for easyJet highlights the airline’s underlying value, RBC Capital Markets analyst Ruairi Cullinane said in a research note. The investment firm is seeking limited access to company information to potentially improve its proposal and address concerns over execution.
EasyJet’s shares had traded well below historical valuation levels before the takeover interest surfaced, despite its strong asset base, including its aircraft order book, airport slots and growing holidays division, Cullinane said. Earnings are expected to remain subdued in fiscal 2026, but initiatives such as reducing winter losses, increasing aircraft capacity and expanding the holidays business could support a recovery, the analyst added.
Even after recent gains, easyJet’s valuation remains below long-term averages, Cullinane said. EasyJet shares traded 6.7% higher at 576 pence on Thursday.
The Dow Jones Industrial Average stood at 51,848.9 on Thursday.