Oil Plunges to Cycle Lows Near $68 as OPEC+ Lifts August Quotas

Oil prices have crashed to pre-war levels around $68-70 per barrel after initial supply disruption fears from the US-Iran conflict rapidly faded. Early estimates of 12-15 million bpd lost Gulf exports were revised sharply lower to 5-6 million bpd as Hormuz tanker traffic rebounded and 150 million barrels of floating storage prepared to hit markets. Renewed strikes briefly lifted Brent to $72.58 on June 29, but the July 1 OPEC+ decision to raise August quotas by 188,000 bpd reinforced downward pressure amid recovering flows and weak demand signals. Analysts now warn of a near-term glut while noting tight inventories could support prices later into the decade.