Brent Posts Weekly Gain as Hormuz Risks Persist

Oil prices fell on Friday but still ended the week higher because the conflict between the United States and Iran continued to raise concerns about global energy supplies. Brent crude closed near $76 per barrel, recording a weekly gain of about 5%. Markets were encouraged by reports that the US and Iran will continue technical and peace talks despite renewed military exchanges and uncertainty over the ceasefire. However, shipping through the Strait of Hormuz, a critical route for around 20% of the world's oil and gas trade, remains significantly disrupted, keeping a risk premium in oil prices. The market expects the conflict to remain limited, but reduced tanker traffic and possible supply interruptions continue to support prices. Meanwhile, the International Energy Agency warned that prolonged tensions could delay rebuilding global oil inventories and disrupt the expected oil market balance.

Brent crude oil slipped to around $75.5 per barrel on Friday but remained on track for a weekly gain of about 4.7% as renewed US-Iran tensions disrupted shipping through the Strait of Hormuz and raised supply concerns. Markets continued to monitor developments after fresh attacks strained the ceasefire, although talks between Washington and Tehran are expected to continue. President Donald Trump said the two sides had agreed to keep negotiations open but warned that the ceasefire was effectively over following renewed hostilities. Earlier reports indicated technical discussions could resume, with a Qatari delegation arriving in Iran as part of diplomatic efforts. The IEA cautioned that a prolonged escalation could undermine plans to rebuild global oil inventories later this year. Meanwhile, the United Arab Emirates increased crude production to a record high last month, highlighting efforts by Gulf producers to maintain exports despite ongoing uncertainty.

Brent crude oil held above $76 per barrel on Friday and remained on track for a weekly gain of nearly 6% as renewed US-Iran strikes delayed a full recovery in tanker traffic through the Strait of Hormuz. Despite the escalation, negotiations between Washington and Tehran toward a longer-term agreement are reportedly continuing, with technical discussions still underway. The International Energy Agency warned that a prolonged conflict could disrupt efforts to rebuild global oil inventories later this year after recent supply losses. Market attention remained focused on the impact on regional energy flows, with vessel tracking data showing traffic through Hormuz stayed significantly below normal levels. However, the United Arab Emirates raised crude production to a record high last month, highlighting efforts by Gulf producers to offset disruptions.