Stocks Market
Brent Crude Falls 2% as Oil Tankers Resume Transit Through the Strait of Hormuz
Oil prices kept sliding on Friday as fears of a global supply squeeze eased. The gradual return of tankers that were stuck in the Strait of Hormuz, coupled with Saudi Aramco’s restart of crude loading at Ras Tanura, dragged Brent down 1.99 % to $73.76 per barrel and U.S. WTI 2.07 % to $70.43. A separate maritime incident off Oman sparked a short‑lived alert, but analysts say the overall market sentiment is shifting toward a lower geopolitical risk premium.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
Market Overview
On Friday, oil markets extended their decline as the immediate risk of a supply shock in the Gulf faded. At 06:49 GMT the front‑month Brent contract slipped 1.99 % to $73.76 per barrel, while the U.S. WTI benchmark fell 2.07 % to $70.43.
Why Prices Fell
The main catalyst was the gradual resumption of crude flows through the strategic Strait of Hormuz. After nearly four months of a near‑standstill, Saudi Aramco announced that loading operations at its Ras Tanura terminal had restarted. Shipping data from LSEG showed two VLCC‑type tankers – each capable of carrying about 2 million barrels – in the process of loading.
- Increased outbound traffic: Vessels that were previously detained in the Gulf are now moving, adding fresh supply to the market.
- China’s demand still subdued: Analysts note that Chinese refiners have not yet lifted their crude purchase programmes, limiting the upside.
June Goh, senior analyst at Sparta Commodities, summed up the mood: “We are seeing a broad‑based sell‑off as the market reacts to higher outflows from the Hormuz corridor and the fact that China has not revived its crude demand.”
Recent Maritime Incident
Just a day earlier, Brent and WTI had jumped over 2 % after a cargo ship was struck by an unidentified projectile near Oman. The United Nations maritime agency temporarily halted its voluntary evacuation program. According to two U.S. officials cited by Reuters, Iranian forces may have fired on the vessel as it attempted to transit Hormuz, while Iranian authorities warned that ships sailing outside the designated lanes could face security risks.
Weekly Performance
Across the week, both Brent and WTI have been on track for an approximate 8 % decline, reflecting a clear retreat of the geopolitical risk premium that has buoyed oil prices in recent months.
Flow Data Highlights
Data released on Thursday showed that crude shipments through the Strait of Hormuz reached their highest level since the start of the U.S.–Israel‑Iran conflict in February. The temporary cease‑fire that opened parts of the channel helped lift the volume, but ING analysts point out that the surge is largely driven by the release of vessels that were previously stuck, while inbound flows remain constrained.
External Risks
Separately, earthquakes in Venezuela on Thursday revived concerns about global oil supply. Early assessments suggest limited damage to oil infrastructure, but power outages could hinder Venezuela’s ability to keep production close to its typical 1.2 million barrels per day.
Overall, the market narrative is shifting from a supply‑tight, risk‑on environment toward a more balanced outlook as shipping lanes reopen and geopolitical tensions ease.