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EMEA Oil Update: Oil Down, Heads for Weekly Decline as Supply Resumes

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Oil futures were down on Friday and were headed for their second straight weekly loss as supply via the Strait of Hormuz started to resume following US-Iran peace deal.

Front-month Murban crude futures dropped by 1.4% to $72.90 per barrel and lost more than 12% so far on a weekly basis, while Brent futures were down 0.2% to $79.69/bbl and fell nearly 9% week-over-week.

"Crude oil prices resumed their downward path as the US-Iran interim peace deal took effect and Persian Gulf oil supplies resumed flows," ANZ analysts said.

The US Central Command confirmed said that it has ended its naval blockade around Iranian ports and coastal regions.

Kpler analysts said that this sudden influx of supply from the stranded ships in Strait of Hormuz could significantly alter previous market forecasts.

The firm noted that the peace deal may limit the projected 2026 global oil demand decline to roughly 700,000 b/d, a sharp shift from the 1.2 million barrels per day drop they anticipated earlier this month.

Market experts note that the Strait of Hormuz is currently operating in a highly complex and fragmented manner.

"Now begins the difficult period of negotiations regarding Iran's nuclear program, which will see some level of caution remain," ANZ said.

Meanwhile, in a post on Truth Social, US President Donald Trump stated that Washington is pushing for a wider resolution across the region.

Trump said that the US expects a complete ceasefire on all active fronts, specifically naming Israel, Lebanon, and Hezbollah, as diplomatic talks move forward.

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