Oil prices continued to trade lower on Friday, with Brent crude hovering near the USD 70-per-barrel mark as concerns over supply disruptions in West Asia eased.
Brent crude was trading at USD 71.62 per barrel, down 0.25 per cent, while WTI crude fell 0.29 per cent to USD 68.49 per barrel. The decline extends the recent cooling in prices after fears of a broader disruption to oil flows through the Strait of Hormuz failed to materialise.
Market sentiment has improved in recent sessions as shipping movement through the Strait of Hormuz, one of the world’s most important energy trade routes, has resumed. The restoration of tanker traffic has reduced immediate concerns over supply risks that had earlier driven volatility in global oil markets.
The latest decline also comes amid signs of easing tensions between the United States and Iran. US President Donald Trump said Tehran had agreed to most of Washington’s demands during ongoing negotiations, indicating progress in diplomatic engagement between the two countries.
Trump also stressed that the United States’ primary objective remained preventing Iran from acquiring nuclear weapons, rather than pursuing regime change.
Despite the more optimistic outlook, Washington said its warning against any disruption to maritime traffic in the Strait of Hormuz. US Ambassador to the United Nations Mike Waltz said interference with commercial shipping could not be justified under international law and called for accountability should such actions occur.
At the same time, Iran is preparing for the state funeral of Supreme Leader Ayatollah Ali Khamenei, while rhetoric between Washington and Tehran on regional security issues remains sharp.
Trump also credited US naval operations in the region for ensuring the uninterrupted movement of oil tankers through the Strait of Hormuz. According to the US President, the security presence helped prevent a significant spike in energy prices.
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