Oil Steadies as US-Iran Talks Continue

Crude oil held near $72 per barrel on Friday after dropping about 2% in the previous session, as reports indicated that the US and Iran will continue peace negotiations despite a recent escalation in hostilities that disrupted energy shipments through the Strait of Hormuz. Even so, US benchmark WTI remained on track to advance more than 4% for the week after US forces carried out strikes on targets in Iran over two consecutive days in response to recent attacks on vessels in Hormuz, triggering retaliatory attacks by Tehran on US bases across the region. President Donald Trump also raised doubts about the interim peace agreement following the renewed fighting, declaring that the deal was over. Shipping traffic through Hormuz slowed sharply this week, with markets closely monitoring whether transit activity will normalize. The strategic waterway continues to be a key sticking point in ongoing US-Iran negotiations.

Crude oil slipped below $72 per barrel on Thursday after surging 4.4% in the previous session, its biggest daily gain since May, as investors reassessed the impact of renewed US–Iran tensions on Middle East supply. The latest escalation, including additional US strikes on Iran and retaliatory attacks on American bases in the region, has put the Strait of Hormuz back at the center of energy market concerns. Still, the scale of any disruption to oil flows remains unclear. Vessel tracking data showed fewer transits through the strait, with most visible traffic moving along routes approved by Iran, while activity on the US-backed Omani corridor was limited. Traders noted, however, that substantial volumes of crude had continued moving through Hormuz before the ceasefire, with some shipments only appearing in tracking data days later because of weak or disabled signals.

Crude oil held near $73.5 per barrel on Thursday after rising 4.4% in the previous session, its strongest daily gain since May, as markets reassessed the outlook for Middle East supply following renewed US and Iranian hostilities. The latest escalation, including further US strikes on Iran and retaliatory attacks on American bases in the region, has placed the Strait of Hormuz back at the center of energy market concerns. However, the extent of the disruption to oil flows through the key shipping route remains uncertain. Vessel tracking data showed a decline in Hormuz transits, with most visible activity concentrated along Iran approved routes, while the US backed Omani corridor saw limited movement. Despite the slowdown, traders noted that significant volumes of crude had continued to pass through the strait before the ceasefire, with some shipments only becoming visible days later due to limited tracking signals.