Key Takeaways

• Oil falls further: Brent dropped 1.4% to $74.19 per barrel, while WTI slipped 1.6% to $70.77.
• Third weekly decline: Both benchmarks on track for roughly 7% weekly losses — extending last week’s peace deal-driven selloff.
• War premium nearly gone: Oil prices have erased most of their gains since the Iran conflict began, having surged above $120 at the height of the crisis.
• Ship attacked near Oman: A projectile struck a cargo vessel transiting near the Strait of Hormuz, reviving security fears and briefly lifting oil more than 2% Thursday.
• U.S. blames Iran: American officials said Iran fired on the vessel, raising questions about the preliminary peace accord’s durability.
• IMO suspends safe passage efforts: The UN’s International Maritime Organization halted efforts to facilitate safe vessel transit in the region.
• But market momentum stays bearish: ING noted the market is “largely focused on the resumption of oil flows through the Strait of Hormuz, which continues to increase.”
• Hormuz flows at conflict-era highs: Crude shipments through the strait climbed this week to their highest level since the conflict began.
• Brent well below recent peaks: The global benchmark has retreated significantly from above $90 earlier this month as settlement hopes build.
• Broader peace deal optimism dominates: Markets are increasingly betting a comprehensive U.S.-Iran agreement could restore stable regional flows.

Oil prices fell nearly 2% on Friday and remained on track for a third consecutive weekly decline, as improving traffic through the Strait of Hormuz and optimism over a U.S.-Iran peace agreement outweighed renewed concerns after a cargo ship was attacked near Oman.

As of 02:10 ET (06:10 GMT), Brent oil futures expiring in August fell 1.4% to $74.19 per barrel, while West Texas Intermediate crude futures also slipped 1.6% to $70.77 per barrel.

For the week, both Brent and WTI were set to post losses of roughly 7% — extending declines triggered by last week’s preliminary U.S.-Iran peace deal.

Oil prices have erased most of their gains since the start of the Iran conflict, after surging above $120 a barrel at the height of the crisis.

Ship Attack Near Oman Revives Security Fears

Both benchmarks had gained more than 2% in the previous session after a projectile struck a cargo vessel transiting near the Strait of Hormuz, reviving fears over the security of one of the world’s most important energy chokepoints.

The attack prompted the United Nations’ International Maritime Organization to suspend efforts aimed at facilitating safe passage for vessels and crews in the region.

U.S. officials later said Iran had fired on the ship, raising questions about the durability of a preliminary peace accord between Washington and Tehran that had helped reopen the waterway after months of disruption.

Market Momentum Remains Firmly Bearish

Crude shipments through the strait climbed this week to their highest level since the conflict began earlier this year.

Brent crude has retreated significantly from peaks above $90 a barrel seen earlier in the month, as traders increasingly bet that a broader U.S.-Iran settlement could restore more stable flows from the region.