Hormuz Uncertainty Drags Brent Prices Down Over 7% Despite Friday Gains
Brent crude oil prices rose above $83 per barrel on Friday, but still recorded a more than 7% decline over the week. The uncertainty surrounding a potential Iran-Oman agreement to restore shipping through the Strait of Hormuz continues to affect global markets.
The agreement could return millions of barrels of Middle Eastern oil to the market, which has been under pressure due to disruptions in supply. However, Abu Dhabi National Oil Co. reported attacks on three vessels transiting Hormuz, and Iran reportedly targeted vessels it considers hostile.
President Donald Trump stated that negotiations were progressing, but differences remain over conditions for reopening the waterway. The tension was further escalated by a large-scale attack claimed by Iran-backed Houthis against Saudi-aligned forces in Yemen.