Oil Steadies, Heads For Weekly Loss

Crude oil steadied near $77 per barrel on Friday as trading remained volatile amid shifting flows through the Strait of Hormuz and renewed uncertainty over US-Iran negotiations on a longer-term peace agreement. Market data suggested shipping activity slowed after an earlier surge in tanker movements, with no outbound vessels seen leaving the Persian Gulf on Friday morning. In contrast, nearly 10 million barrels of crude were observed transiting or positioned near the strait on Thursday, including the first Saudi-owned tankers to move since the conflict began more than three months ago. However, optimism from an interim US-Iran accord was tempered after planned talks in Switzerland were delayed, raising doubts over the durability of any supply recovery. Despite recent stabilization, crude was on track for a weekly decline of around 10%, erasing most of the gains accumulated during the height of the conflict.

Crude oil rose above $77 per barrel on Friday after planned talks between the US and Iran in Switzerland was cancelled as confirmed by the Swiss Foreign Ministry. Israel also continued to carry out strikes on Hezbollah targets in Lebanon. Still, oil prices were on track for a sharp weekly decline as investors welcomed improving shipping conditions in the Strait of Hormuz after the US-Iran interim peace took effect. The US Central Command announced it had lifted restrictions on traffic to and from Iranian ports and coastal waters, while the Joint Maritime Information Center advised vessels transiting the strait to follow a route closer to Oman’s coastline to reduce the risk from mines. Tankers carrying previously stranded crude began exiting the waterway on Thursday, and Kuwait said it would begin increasing production. As a result, oil prices have erased nearly all the gains recorded since the Middle East conflict began in late February.

Crude oil rose above $77 per barrel on Friday but was still on track for a sharp weekly decline, as investors welcomed improving shipping conditions in the Strait of Hormuz following the implementation of the US-Iran interim peace agreement, which brought an end to a prolonged conflict that triggered the largest supply disruption on record. The US Central Command announced it had lifted restrictions on traffic to and from Iranian ports and coastal waters, while the Joint Maritime Information Center advised vessels transiting the strait to follow a route closer to Oman’s coastline to reduce the risk from mines. Tankers carrying previously stranded crude began exiting the waterway on Thursday, and Kuwait said it would begin increasing production. As a result, oil prices have erased nearly all the gains recorded since the Middle East conflict began in late February.