Hormuz Shipping Talks Crush Oil Prices as Exports Remain Stuck

Oil prices took a hit this week as discussions of an Oman-Iran shipping corridor and a U.S. shift towards sanctions over military pressure dampened risk premiums.

The Strait of Hormuz has been making headlines, with only seven vessels passing through on Thursday, compared to 17 the day before. This is despite Goldman Sachs' estimate that Gulf exports total around 15-16 million barrels per day, still below pre-war levels but above the March low.

OPEC+ announced six output increases, but Hormuz has blocked exports, leaving most new production stuck on paper. WTI and Brent prices are currently below key resistance and support levels at $84.61 and $90.12 respectively, with sellers controlling the near-term crude oil trade.