Global Oil Prices Fall as Strait of Hormuz Reopens

Global oil prices have plummeted, retreating from the $80 per barrel mark following the reopening of the Strait of Hormuz. Crude oil settled at $69 per barrel on Thursday, June 25, 2026, with Brent crude at $72 per barrel.

Ibrahim Assuaibi, Director of PT Traze Andalan Futures, attributed the significant drop to the normalization of traffic in the Strait of Hormuz. "With the Strait of Hormuz reopened and transportation running smoothly, crude oil prices have experienced a significant decrease," he stated.

Assuaibi also pointed to an oversupply in the market as a contributing factor. Crude oil supply rose to 103.3 million barrels per day from 103.1 million, while demand fell from 100 million barrels per day to below that threshold. He forecasts that oil prices could drop to $65 per barrel next week and this trend may persist through July.

Given the falling global oil prices, Assuaibi advised the government to promptly lower the prices of non-subsidized fuel. "Since the price is already below the state budget reference of $70 per barrel, even with the rupiah continuing to weaken," he added.