Oil Prices Edge Down but Set for Strongest Monthly Gain in Nearly Two Years

Oil prices have eased on Friday following reports that more tankers had resumed crossing the Strait of Hormuz, easing fears of prolonged supply disruptions through the world's most important oil transit route.

Despite the decline, both Brent crude and West Texas Intermediate (WTI) are set to post gains of nearly 20 percent for July, reflecting the sharp geopolitical risk premium triggered by the conflict between the United States and Iran.

Brent crude traded at $88 per barrel, down 1.16 percent, while WTI fell by 1.34 percent to $82.47 per barrel.

Analysts at ING said there were growing indications that ship-to-ship movements of crude through Hormuz had resumed, although much of the activity remained difficult to track because vessels were operating with their transponders switched off.