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Business
Jun 25, 2026
Analyzed by GPT OSS 120B

Oil Prices Slip Below Pre‑Iran War Levels as UK Business Leaders Urge New PM Andy Burnham to Ease Burdens

AI Summary
Brent crude fell to $72.24 a barrel, the lowest level since before the US‑Iran war, as peace talks ease geopolitical tensions. UK business leaders, including the BCC, are pressing the incoming prime minister Andy Burnham to avoid new cost burdens and restore confidence.

Oil market slides to pre‑Iran war lows amid US‑Iran peace talks

Brent crude dropped to as low as $72.24 per barrel on 25 June 2026, marginally below the price recorded the day before the Iran war began. Analysts attribute the decline to strategic inventory releases, a softening demand outlook from China, and a surge in tanker traffic through the Strait of Hormuz.

Business community rallies at BCC conference to demand confidence‑boosting policies

At the British Chambers of Commerce’s Global Annual Conference, Shevaun Haviland, Director General of the BCC, warned that the next prime minister—most likely Andy Burnham—must focus on lifting business confidence rather than adding fiscal pressures.

  • Key speakers: Chancellor Rachel Reeves, former BoE chief economist Andy Haldane, Shadow Chancellor Sir Mel Stride, Liberal Democrat leader Sir Ed Davey, and Green Party leader Zack Polanski.
  • Agenda highlights include a 9:00 am address by Reeves and a 9:25 am speech by Haviland.

Quantitative snapshot: oil oversupply and traffic surge

Swissquote senior analyst Ipek Ozkardeskaya noted a “small oversupply in some key markets” driven by:

  • Strategic releases from inventories.
  • Reduced demand from China.
  • Increased tanker movements, with vessel traffic in the Strait of Hormuz doubling to its highest level since late February, according to MarineTraffic data.

Implications for the UK economy and energy policy

The price dip eases input costs for energy‑intensive UK firms, but the broader narrative of “weak confidence” could dampen investment. Business leaders argue that political leadership—particularly the upcoming administration of Burnham—must avoid policies that could reignite cost pressures.

Looking ahead: oil market stability and UK policy trajectory

If US‑Iran negotiations continue to progress, the oil market may stabilise around the low‑$70 range, providing short‑term relief for UK manufacturers. However, sustained growth will depend on whether the new government implements confidence‑building measures, such as tax reliefs or regulatory certainty, to translate lower energy costs into tangible investment.