BEIJING, June 25 (Reuters) - Oil prices continued their decline on Thursday, nearing pre-war levels, as stranded tankers left the Strait of Hormuz following a tentative agreement to end the U.S.-Israel trade war with Iran, easing supply concerns.

By 0004 GMT, Brent crude futures for August delivery had fallen 40 cents, or 0.54 percent, to $73.34 a barrel. U.S. West Texas Intermediate crude futures were down 27 cents, or 0.38 percent, at $70.07 a barrel.

Brent crude for August was priced lower than September futures, at $73.59, indicating a short-term supply glut.

“The speed of this decline has surprised many, as markets are expecting Middle East oil to recover at a much faster pace than many anticipated just two weeks ago,” said Tony Sycamore, an analyst at IG, in a note.

Brent crude fell by more than three dollars on Wednesday as supply concerns eased, and West Texas Intermediate crude fell by nearly three dollars at settlement.

U.S. Energy Secretary Chris Wright said at a forum on Wednesday that oil flows through the Strait of Hormuz were nearing pre-war levels with Iran, noting that at least 20 million barrels had flowed through the strait in the previous 24 hours. He added that a full return to normal would take several weeks due to the need to clear mines from the strait.

Oman opened temporary shipping lanes yesterday to facilitate the passage of tankers through the Strait of Hormuz, and the International Maritime Organization and Omani authorities are coordinating vessel traffic. The Qatari Prime Minister visited Oman for talks on initiating negotiations with Iran, Iraq, and the Gulf states regarding the future management of the strait.

The U.S. Energy Information Administration said yesterday that total U.S. crude oil inventories hit their lowest level since 1984 last week, due to increased refining demand and the government's release of oil from its emergency reserves. However, markets did not react to the data, as traders remained focused on the Strait of Hormuz.