The average price for 500 litres of home heating oil in Northern Ireland has fallen below £400 for the first time since the Iran crisis began in February. Figures from the NI Consumer Council recorded a price of £395 on Tuesday, down from almost £630 at the peak in April.

Global oil markets have been easing in recent weeks as traders anticipated a deal between the United States and Iran. Prices continued to slide after the agreement was announced. Brent crude was trading just above $80 a barrel on Tuesday morning, a sharp decline from around $120 per barrel during the most intense phase of the conflict and from pre-crisis levels as low as $65.

At the start of the year, before hostilities escalated, the same quantity of heating oil cost less than £300. The market is unregulated in Northern Ireland, and prices almost doubled within a week at the outset of the crisis.

Petrol and diesel costs have also retreated from their highs. The average price of a litre of unleaded was just under 151p last week, compared to a recent peak of 154p. Diesel averaged 169p, down from an April peak of 188p. Analysts estimate that a $10 rise in crude oil adds roughly 7p per litre to pump prices.

Around two-thirds of Northern Ireland households rely on heating oil. Lower-income households that use oil are due to receive a £100 grant later this year.