U.S. crude oil prices have fallen below $70 due to an attack on a cargo ship near the coast of Oman in the Strait of Hormuz.
The attack, attributed to Iran, has led oil tankers to exit the strategically important Strait, easing supply concerns.
International benchmark Brent crude futures for August settled down 4.34% at $71.99 a barrel, while U.S. West Texas Intermediate futures dropped 3.74% to close at $69.23 a barrel.
A U.S. official stated that Iran was responsible for the attack on the ship, which was sailing under a Singapore flag, and reported no casualties or damage.
Tensions between Iran and the U.S. remain high as the two countries disagree over several financial issues.
Meanwhile, OPEC faces the possibility of another exit by its second-largest producer, as Iraq is demanding a higher production quota and has threatened to leave the cartel if its demands are not met.
