Brent Slips as Traders Monitor Hormuz Flows

Brent crude slipped to around $88 per barrel on Friday, paring gains from the previous session as traders continued to monitor developments in the Middle East and efforts to reopen the Strait of Hormuz. Goldman Sachs said oil exports from the Persian Gulf have recovered to around two-thirds of pre-war levels amid increased flows through Hormuz. Total crude exports from the region have reportedly risen to 15-16 million barrels per day, still around 7-8 million barrels below pre-conflict levels but well above a trough of 5-6 million barrels in March. Iran and Oman also reached a revenue-sharing agreement over the strategic waterway, although Tehran stressed that the arrangement does not guarantee an immediate reopening of the strait. Meanwhile, the Trump administration told mediators that it has no interest in returning to the terms of a preliminary deal reached with Iran in June that later collapsed.

Brent crude slipped toward $88 per barrel on Friday, but held most of the gains from the previous session as escalations in the Russia-Ukraine war shifted market attention from the Middle East toward Eastern Europe. Reports indicated that Russian President Vladimir Putin said talks with Ukraine had yielded no results and that Russia was preparing to intensify the war. Ongoing Ukrainian strikes on Russian refineries and ports are disrupting the country’s energy infrastructure and could constrain its ability to export crude and refined products. Still, oil prices are on track to end the week lower as markets weighed signs of diplomatic progress in the Middle East and improving supply prospects through the Strait of Hormuz. Iran’s military said it had reached a revenue-sharing agreement with Oman over the strategic waterway, although Tehran stressed that the arrangement does not guarantee an immediate reopening of the strait.

Brent crude oil traded around $88 a barrel on Thursday after three consecutive sessions of losses, as markets weighed improving supply prospects through the Strait of Hormuz against growing disruptions to Russian energy exports. Iran’s military said it had reached a revenue-sharing agreement with Oman over the strategic waterway, raising hopes that shipping disruptions could ease. However, Tehran stressed that the arrangement does not guarantee an immediate reopening of the strait, keeping uncertainty elevated. Saudi Arabia also appears to be increasing oil loadings from Persian Gulf terminals as it seeks alternatives to routes exposed to Houthi attacks in the Red Sea. Meanwhile, concerns are growing over potential further escalation of the Russia-Ukraine war. Continued Ukrainian strikes on Russian refineries and ports are disrupting the country’s energy infrastructure and could limit its ability to export crude and refined products.