Hormuz Oil Flows Recover as Geopolitics Weigh on Prices

Oil prices fell on Friday and are headed for their first weekly decline in three weeks. The market remains focused on developments surrounding the conflict between the United States and Iran, as well as signs of a gradual recovery in oil shipments through the Strait of Hormuz.

The Brent crude futures price dropped 58 cents to $89.12 a barrel, while US West Texas Intermediate (WTI) futures fell by 52 cents to $83.01 a barrel. Analysts at ING noted that despite stalled diplomatic efforts, there are increasing signs of additional oil volumes flowing through the Strait of Hormuz.

Goldman Sachs estimated on Thursday that total Gulf oil exports had recently reached around 15 million to 16 million barrels per day. This is approximately 7 million to 8 million barrels per day below pre-war levels but 5 million to 6 million barrels per day above the lows recorded in March.

The recovery in flows has eased some of the immediate supply concerns that had supported oil prices, even as geopolitical risks remain elevated. Diplomatic uncertainty remains a key factor for the oil market, with The Wall Street Journal reporting that the Trump administration had repeatedly told mediators it did not want to revive a memorandum of understanding signed in June.