Oil prices fall as tanker traffic resumes through Hormuz after US–Iran deal
SINGAPORE: Global oil prices declined on Friday after shipping through the Strait of Hormuz resumed following a peace agreement between the United States and Iran, easing concerns over supply disruptions.
Brent crude futures fell to $79.42 per barrel, while West Texas Intermediate (WTI) dropped to $76.43 per barrel, reflecting improved supply expectations in global markets.
The decline came as several oil tankers, including Saudi-flagged vessels carrying millions of barrels of crude, successfully passed through the strategic waterway after the agreement was signed.
Market analysts said the reopening of the route could allow significant volumes of previously delayed oil shipments to return to global supply chains. Estimates suggest that tens of millions of barrels of crude held up in the region may gradually enter the market.
The Strait of Hormuz, a key global energy route, handles a large share of the world’s oil and liquefied natural gas trade. Concerns over disruptions had previously contributed to price volatility.
In addition to resumed shipping activity, expectations of eased restrictions on Iranian oil exports have also added pressure on prices, as they could increase global supply in the coming weeks.
Officials in several Middle Eastern producing countries have indicated plans to gradually restore normal output and export levels following the easing of tensions.
However, analysts noted that uncertainty remains, as broader regional tensions have not fully resolved and the pace of recovery in shipping activity is still being closely monitored.
Market experts said traders are waiting for clearer signs of stable and sustained tanker movement before expecting further declines in oil prices.
