Oil Prices Falter Amid Shift in US Tactics Against Iran

Oil prices remained steady on Friday but are heading for significant weekly losses. Brent crude futures were down 4 cents at $89.66 a barrel, while US West Texas Intermediate (WTI) crude fell 32 cents to $83.21 a barrel.

The decline is attributed to the shift in US tactics from military pressure to economic sanctions against Iran, according to Suvro Sarkar, head of energy research at DBS Bank. The move has led to a decrease in risk premiums, which contributed to the drop in prices.

Hormuz traffic remains uneven, with only 7 commodity vessels transiting the waterway on Thursday, compared to 17 the previous day and below the 10-day average of 15. Goldman Sachs estimated that total Gulf exports recently stood at 15 million to 16 million barrels per day, about 7 million to 8 million barrels per day below pre-war levels.