Oil Prices Dip Amid Recovering Hormuz Strait Traffic

Oil prices took a dip on Friday as traffic in the Strait of Hormuz began to recover, easing concerns about supply disruptions. West Texas Intermediate futures for September delivery fell by 1.62% to $82.24, while Brent crude futures dropped by 0.98% to $88.16 per barrel.

The Commonwealth Bank of Australia noted that oil flows through the vital waterway have rebounded to around 30-35% of pre-war levels. The bank estimates that a return to 50-60% of normal flows could be enough to reassert oversupply conditions in the global market.

Meanwhile, President Donald Trump's call for adding tariffs on Iran to a bipartisan sanctions bill targeting Tehran and Russia has investors weighing the impact on the oil market. Despite the relatively small amount of goods imported from Iran - just $1.4 million in 2025, with works of art making up 55% of that value - Trump sees tariffs as a key tool for economic coercion.