Amid the ongoing peace efforts between US-Iran, oil prices remained largely unchanged on Friday.
With global benchmarks on track for an expected decline as investors remained optimistic that current peace efforts between Iran and the US would prevent further disruption to oil supplies.
Brent crude slipped 8 cents (0.1%) to $71.72 per barrel, while U.S. West Texas Intermediate (WTI) saw a sharp decline of 22 cents (0.3%) to $68.47 per barrel.
Both benchmarks were down nearly 0.3% for the week after reaching the lowest levels since the US-Israeli conflict with Iran escalated in the starting of 2026.
Market sentiment was enhanced on expectations that the vital waterway, Strait of Hormuz, could remain open amid the ongoing diplomatic efforts between Tehran and Washington.
Severe credible analysts stated the deal remains very fragile; however, both sides have strong economic incentives to avoid further escalation.
Meanwhile, Strait of Hormuz’s activity remained continued after the initial US-Iran understanding, with persisting uncertainty after recent military exchanges, including Iranian attacks on a cargo ship.
With the possibility of increased exports, Gulf producers are boosting output. Kuwait’s oil production significantly increased to 1.65 million barrels per day (bpd) in June, up from 580,000 bpd in May, as per report.
Meanwhile, Saudi Aramco has shifted from long-term contracts to spot sales in Asia to accelerate deliveries.
Moreover, shipping data showed that at least five supertankers carrying around 10 million barrels of Saudi crude have passed via the Strait of Hormuz.
Analysts stated oil prices are likely to remain under pressure until excess crude currently stored on tankers and in storage facilities is absorbed by the market. A stronger price recovery will also depend on whether increased production is enough to offset any future disruptions to shipments via the most crucial waterway.
