Oil Prices Under Pressure as Middle East Tensions Persist
Global oil prices have remained under pressure despite mixed news flow this week. Crude fell more than 8% this week to a two-week low on Wednesday and is on its way to log weekly losses.
A sign of easing Middle East tensions, the Strait of Hormuz saw oil shipments rise to around 6 million barrels per day (mbpd), although total flows through the strait remain nearly 8 mbpd below normal levels.
The Wall Street Journal reported that President Trump has little interest in returning to the terms of the June ceasefire deal with Iran, reducing hopes that an Iran-Oman arrangement to reopen Hormuz could lead to a broader US-Iran breakthrough.
Despite this, crude prices also have support amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz.