Hormuz Tanker Traffic Offset Fears of Broader Middle East Conflict

Oil prices declined by more than 1% on Friday as tanker traffic through the Strait of Hormuz continued to flow, offsetting fears of a broader Middle East conflict. The pullback came after a day of dramatic escalation between the US and Iran.

Brent futures dropped $1.03, or 1.2%, to $88 a barrel, while U.S. West Texas Intermediate (WTI) crude slid $1.50, or 1.8%, to $82.09 a barrel. The decline was attributed to the continued flow of tanker traffic through the Strait of Hormuz, which carries about a fifth of global crude oil and liquefied natural gas shipments.

Analyst Daniel Hynes said, 'Crude oil is edging lower as rising Middle East tension is being offset by signs of increased flows in the Strait of Hormuz.'