Oil Prices Slide for Fourth Straight Day Amid Strait of Hormuz Deal

Oil prices continued to slide for the fourth consecutive day as market participants weighed the possibility of increased energy flows through the Strait of Hormuz. The escalation of the Russia-Ukraine conflict is also affecting Russian production and exports.

Brent crude fell 0.46% to trade at around $87.46 a barrel, posting a loss of more than 7% for the week. U.S. WTI crude also dropped 0.46% to trade near $81.80 a barrel.

Prices initially rose on Wednesday due to reports that Russian President Vladimir Putin could escalate the war in Ukraine. However, gains were reversed after the announcement of a deal between Iran and Oman over the Strait of Hormuz, which includes a revenue-sharing agreement.

Despite the decline in recent days, crude oil prices remain over 40% higher compared to the beginning of the year due to the six-month conflict limiting energy supplies from the Persian Gulf.