Oil prices saw a slight increase, offsetting a significant weekly decline, as traders evaluated the potential for revived crude shipments through the Strait of Hormuz after an interim peace deal between Washington and Tehran. However, persistent regional tensions continue to be a factor in market assessment.
Brent crude rose above $80 a barrel, reducing its weekly drop to approximately 8%. Concurrently, West Texas Intermediate (WTI) for August delivery hovered around $77. The movement comes as ships laden with previously stranded oil have begun to exit the waterway. This follows the interim peace accord struck earlier in the week.
US Vice President JD Vance reportedly paused a trip to Switzerland to engage in further discussions with Iran, indicating the ongoing nature of diplomatic efforts surrounding the agreement. Former National Security Advisor John Bolton criticized the Iran deal, labeling it "a self-inflicted wound."
Earlier in the day, at least four Saudi oil supertankers, owned by Bahri, started moving towards the Gulf of Oman after being idle in the Indian Ocean for weeks. Additionally, at least three other Bahri tankers that had been stuck in the Persian Gulf for months also exited the Strait of Hormuz. These movements signal that producers are preparing for a renewed flow of oil through the critical waterway.
Despite the increased vessel activity, industry groups remain cautious, citing concerns about mine clearance, traffic management, and long-term security. They emphasize the need for stability and certainty for shipowners and insurers, with warnings that a full return to normal shipping operations could take months due to supply chain disruptions.
