Audio By Carbonatix
Oil prices fell on Friday amid prospects of more supply returning to the market after oil tankers began moving through the Strait of Hormuz following the signing of the U.S.-Iran interim peace deal.
Brent crude futures fell 54 cents, or 0.68%, to $78.31 a barrel as of 0146 GMT. U.S. West Texas Intermediate crude slipped 46 cents, or 0.60%, to $76.14 a barrel.
The front-month July contract expires on Monday. The more actively traded August contract was at $75.06 per barrel, down $0.79.
Both benchmarks touched their lowest since early March on Thursday as several tankers, including three Saudi-flagged vessels with 6 million barrels of crude onboard, sailed through the strait hours after U.S. President Donald Trump signed a deal with Iran to end their war.
Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets.
The agreement also includes the lifting of U.S. sanctions on Iranian oil, which would increase supply.
"Traders are still waiting for hard evidence that tanker traffic through the Strait of Hormuz is actually normalising before committing to the next leg lower," KCM Chief Market Analyst Tim Waterer said.
"Until those ships start moving consistently again, scepticism lingers and keeps a lid on the downside."
Prior to the war, roughly one-fifth of the world’s oil and liquefied natural gas transited through the strait, and analysts have suggested trade could return to normal in the coming months if the U.S.-Iran deal holds.
Middle East producers are also gearing up to resume exports.
Kuwait Petroleum Corp said on Thursday that all force majeure notices issued during the war have been lifted with immediate effect.
Iraq's Oil Minister Basim Mohammed said the country's oilfields are ready to resume production, and a return to normal output levels will take place gradually until previous production rates are restored.
However, Israel has continued its war against Hezbollah in Lebanon, raising questions about whether the U.S.-Iran peace agreement would hold.
Latest Stories
-
Freddie Blay alleges Mahama ordered demolition of son’s Polo Beach Club at La Beach
6 minutes -
‘We’ve complied with all the rules’ – NPP assures transparency in national elections
17 minutes -
‘Who is financing all this?’ – Victoria Bright questions networks behind Ghana-linked drug trade
23 minutes -
If we don’t know Baffour Awuah’s charge, there’s a fishing expedition going on – Kofi Bentil
30 minutes -
Parliament questions continued detention of Baffour Awuah by EOCO, demands due process
1 hour -
Baffour Awuah did not report to EOCO voluntarily; an arrest warrant forced him – Theophilius Dzimega
1 hour -
Baffour Awuah case risks looking like a display of state power – Sulemana Braimah
1 hour -
Campaign posters, billboards take over Kumasi as NPP goes to polls
2 hours -
‘I’ve been told I’m also involved’ – John Darko says he’ll cooperate with EOCO if invited over Baffour Awuah case
2 hours -
Follow the evidence, not assumptions, in Baffour Awuah case – Victoria Bright
2 hours -
48-hour detention rule is not an automatic entitlement for EOCO – Victoria Bright
2 hours -
Baffour Awuah’s arrest is a political witch-hunt – Kofi Bentil
2 hours -
MT Asharami Ghana arrives in Tema as government pushes stronger LPG infrastructure
3 hours -
Weweso JHS wins 5th edition of Otumfuo Reading Competition 2026
3 hours -
‘Criminal law can’t turn every poor commercial judgment involving state entity into an offence’ – Victoria Bright
3 hours