Oil prices are down another 4% on June 26, with American crude on track to end the week below $70 U.S. a barrel.
Brent crude oil, the international standard, is down 4% at $72.32 U.S. a barrel, while West Texas Intermediate (WTI) crude, the U.S. benchmark, is also down 4% at $69.50 U.S. a barrel.
The declines come despite reports that a vessel in the Strait of Hormuz waterway was attacked by Iran on June 25. The reason for the attack is not clear.
The ship that was attacked was sailing under a Singapore flag and reported no casualties or environmental damage. Other ships continue to traverse the Strait of Hormuz without incident.
Still, tensions in the Middle East remain high, with Iran and America disagreeing over the use of $300 billion U.S. in funds that had been earmarked for Iran’s reconstruction.
Separately, the OPEC+ oil cartel faces the possibility of an exit by Iraq, its second-largest producer.
Iraq has sought a higher production quota from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and told the group it could leave if its demands aren’t met.
The United Arab Emirates (U.A.E) left OPEC+ in May of this year.
Despite the drama and uncertainty, oil prices have steadily fallen over the past week amid the reopening of the Strait of Hormuz, where 20% of the world’s crude is shipped.
Oil prices had been above $110 U.S. a barrel in recent months after the U.S. and Israel attacked Iran at the end of February.
