World oil prices continue to fall

Tengrinews.kz - Oil prices continue to decline after the United States decided to temporarily lift restrictions on Iranian oil exports.
What happened
The decline was triggered by a decision by the U.S. Treasury Department to authorize the production, sale and transportation of Iranian oil, as well as related transactions, including insurance. The license, which remains valid until August 21, also permits deliveries of Iranian oil to the United States and dollar-denominated payments, including transactions involving sanctioned individuals and entities.
What is happening with oil prices
The price of August Brent crude futures on London’s ICE exchange fell by 3.74 percent to $77.55 per barrel, according to trading data as of 10:13 a.m. Astana time.

August WTI crude futures fell by 3.89 percent to $73.58 per barrel.
Why the market is reacting this way
Experts had repeatedly predicted that the temporary easing of sanctions on Iranian oil would increase global supply and, together with the reopening of the Strait of Hormuz, push global prices lower.
Oil prices surged after hostilities began on February 28. Tehran’s closure of the strait, through which around 20 percent of the world’s oil had been transported before the conflict, caused a large-scale fuel crisis and had a particularly severe impact on Arab oil-producing countries that depend heavily on the route.
How oil prices affect Kazakhstan’s economy
Oil and gas industry expert Askar Ismailov previously noted that oil prices affect budget revenues, the National Fund and the tenge exchange rate. When prices rise, the effect is positive, and vice versa.
Instability in the oil market increases risks to the economy. Sharp price fluctuations affect inflation, investment activity and financial markets. Kazakhstan’s dependence on oil revenues makes the country vulnerable to external shocks.
The 2026–2028 national budget is based on key assumptions of an oil price of $60 per barrel and an exchange rate of 540 tenge to the dollar. These benchmarks are used to calculate export revenues, social payments and government spending.