Oil Prices Fall as Hormuz Flows Rebound Amid Iran Tensions

Oil prices fell on Friday and were poised to end the week lower despite simmering tensions between Iran and the US. The Brent crude futures price dropped by 52 cents or 0.6% to $89.18 a barrel, while West Texas Intermediate crude futures fell by $1.01 or 1.2% to $82.52.

The market has been surprised by increased oil flows through the Strait of Hormuz, which is being attributed to the Iran-Oman shipping corridor and US mine clearance claims. Rystad analyst Janiv Shah said that this would allow Asian refiners to pull and consume the available volume.

However, flows through the Strait remain choppy, with seven commodity vessels transiting on Thursday compared to 17 a day earlier. The Bab el-Mandeb saw 17 commodity vessels pass through, with six entering and 11 exiting.