Oil Prices Stabilize Amid Ongoing US-Iran Tensions

Oil prices have stabilized to moderately lower levels on Friday morning as tensions between the United States and Iran continue. WTI crude is trading at $83.28 per barrel, down 0.3% from Thursday's settlement of $83.53.

The slight decline in oil prices comes despite improved flows through the Strait of Hormuz, a key shipping route in the Persian Gulf. Reuters reports that Goldman Sachs estimates Gulf exports have recovered to approximately 15 million to 16 million barrels per day, still below pre-war levels but above the March low.

However, shipping through Hormuz remains highly inconsistent, with only seven commodity vessels crossing on Thursday, down from 17 the previous day and below the recent 10-day average of 15. Diplomacy is another critical variable, with Qatar's prime minister meeting senior Iranian officials to press for a return to open navigation.

Despite the stability in oil prices, Brent is heading toward a roughly 5.1% weekly decline, while WTI is approximately 4.5% lower, according to Reuters. The market has removed some of the geopolitical premium accumulated during the previous two weeks as Gulf exports recover and discussions continue over a Hormuz shipping corridor.