Iran Tensions Fail to Lift Oil Prices Amid Recovering Supplies

Oil prices are on track to fall for the week as tensions between the US and Iran do not appear to be lifting crude prices. Despite ongoing conflicts, analysts say oil supplies through the Strait of Hormuz seem to be recovering.

The Brent crude futures fell $0.60, or 0.67%, to $89.10 a barrel, while US West Texas Intermediate (WTI) crude dropped $0.64, or 0.77%, to $82.89.

Market analysts pointed out that producers are adapting to the conditions surrounding the strategic waterway and oil supplies have increased significantly. Goldman Sachs estimated that Gulf oil exports had recently reached between 15 million and 16 million barrels per day (bpd), which is a recovery from the lowest point recorded in March but still below pre-war levels.

The situation was further complicated by reports that the US administration does not want to revive an earlier agreement with Tehran, adding to geopolitical uncertainty.