Oil Prices Dip as Iran Allows Ships Through Strait of Hormuz
Brent crude oil traded at $107.68 per barrel in international markets on Friday, down 1.8% from the previous close, following a week of sharp volatility driven by escalating tensions in the Middle East.
Oil prices declined as Iran allowed a small but growing number of commercial ships to pass through the Strait of Hormuz, according to ship-tracking data. The number of transits was “nearly double” the numbers seen in recent days, according to maritime intelligence company Windward.
After rising to as high as $119.13 on Thursday, Brent closed the session at $108.65. At 05.42 GMT, international benchmark Brent crude was down 1.8% at $107.68 per barrel, while US benchmark West Texas Intermediate traded at $94.05 per barrel.
Comments by Israeli Prime Minister Benjamin Netanyahu, indicating that Israel had supported the US “through intelligence and other means” in keeping the Strait of Hormuz open, helped ease prices.
Netanyahu also said during a press conference, “The war will end faster than people think.” Several countries, including France, Germany, Italy, Japan, the Netherlands and the United Kingdom, said they are ready to contribute to efforts to ensure navigational security in the Strait of Hormuz, a key global energy transit route.
Oil prices remained volatile throughout the week following attacks on refineries linked to the South Pars gas field, located in southern Iran. Israel, which claimed responsibility for the strikes, targeted natural gas facilities in Iran for the first time since launching joint operations with the US.
Iranian missile attacks were also reported to have targeted the Ras Laffan region in Qatar, home to major liquefied natural gas (LNG) processing facilities, causing what were described as extensive infrastructure damages.
Meanwhile, Kuwait Petroleum Corporation said the Mina Abdullah refinery in Kuwait was targeted by an unmanned aerial vehicle, resulting in a fire at the facility.
These developments heightened supply concerns and supported upward pressure on oil prices earlier in the week. Analysts say escalating tensions in the Middle East, combined with strikes on energy infrastructure, point to the risk of prolonged disruptions to global oil supply. Inflation: LCCI Cautions Against Complacency
