International oil prices are likely to slip under $70 per barrel for the first time in almost two years. This marks a significant shift, since oil last traded below this level back in September 2024.

At the time of press, Western Texas Intermediate stood at $74.4, down 2 percent. Brent crude hovered at $78 per barrel, down 2.5 percent. Meanwhile, crude extracted from reserves operated by the United Arab Emirates stood at $71 per barrel, down nearly 3 percent over the past 12 hours.

Several factors are driving this oil prices fall $70 trend. Pakistan is currently mediating talks between Iran and the US in Switzerland. Additionally, the resumption of vessel movement across the Strait of Hormuz has significantly favored the ongoing decline.

Oil first started approaching the $70 mark after all three parties agreed to meet in Switzerland for war talks. Therefore, markets reacted almost immediately to news of renewed diplomacy. Lower shipping risk through Hormuz appears to be reinforcing that initial momentum.

However, the negotiations themselves haven’t gone smoothly. So far, there appears to be a deadlock in the talks. The Iranian delegation momentarily left the discussions after threats issued by US President Donald Trump raised tensions.

Still, Pakistan has managed to calm both sides enough to keep the fragile connection alive. This matters for long-term prospects, since any lasting peace deal could further reshape the oil pricing trend. Finally, oil has remained bearish since the talks began, with markets watching closely for the next development out of Switzerland.