Oil Faces Sharp Weekly Losses as Hormuz Traffic Slowly Recovers
Oil prices are headed for a significant weekly drop as the interim U.S.-Iran peace deal begins to restore shipping through the Strait of Hormuz, easing the largest-ever supply disruption in the global crude market.
Brent traded near $79 a barrel, falling more than 9% for the week, while West Texas Intermediate (WTI) for August delivery hovered around $75 per barrel. Vessels previously stalled in the waterway began moving on Thursday, and Kuwait announced plans to ramp up oil production.
The U.S. Central Command lifted its blockade on Iranian ports and coastal areas, while the Joint Maritime Information Center recommended ships use routes closer to the Oman coastline to avoid mines. Former National Security Advisor John Bolton described the situation as a "self-inflicted wound."
President Donald Trump welcomed the developments, pushing back against critics who argued the agreement gave too much leverage to Tehran. "Markets are loving what is happening—oil prices way down, and stocks way up," Trump wrote on social media.
Despite falling prices, a full reopening of the Strait of Hormuz is expected to be a lengthy and delicate process, requiring infrastructure repairs, restart of oil wells, and coordinated demining operations. Some shipowners remain cautious about conditions in the waterway and the Persian Gulf.
Brent for August delivery fell 0.9% to $79.10 per barrel at 8:02 a.m. Singapore time. WTI for July lost 0.7% to $76.05 per barrel, while the more-active WTI August contract slipped 0.8% to $75.27 per barrel.
Source : Newsmaker.id
