Oil Prices Decrease 5% over 5 Days as Supply Risk Eases
Oil prices fell 5% this week as diplomatic efforts eased fears of supply disruptions in the Middle East, while uncertainty over global demand and monetary policy weighed on prices.
Brent crude traded at $87.88 per barrel, down 5.2% from last Friday’s close of $92.67. US benchmark West Texas Intermediate (WTI) crude traded at $82.83 per barrel, down 4.9% from $87.06 a week earlier.
Oil prices started the week lower as escalating economic tensions between the US and Iran, renewed trade friction between the US and Canada and uncertainty over the Fed’s interest-rate outlook weighed on market sentiment.
The US launched Operation Economic Outcast on Monday, a campaign aimed at further isolating Iran from the global financial system.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Treasury Secretary Scott Bessent told reporters.
Prices extended losses on Tuesday amid concerns that the tensions could weigh on global oil demand.
On Wednesday, oil prices came under further pressure after Washington signaled a shift away from military strikes against Iran toward economic pressure, easing immediate fears of supply disruptions.
US Secretary of State Marco Rubio told several allied foreign ministers that Washington does not expect to launch new strikes against Iran “for the time being,” signaling a shift toward economic and maritime pressure, Axios reported.
Oil prices extended their losses on Thursday as diplomatic efforts involving Iran, Qatar and Oman further eased supply concerns, while rising US crude inventories added downward pressure.
Qatari Prime Minister and Foreign Minister Mohammed bin Abdulrahman Al Thani traveled to Tehran on Thursday to meet Iranian officials for talks aimed at de-escalating regional tensions and advancing negotiations over the Strait of Hormuz.
The visit came days after Iran and Oman agreed to activate a joint corridor through the strait.
Iranian Deputy Foreign Minister Kazem Gharibabadi said the US and other countries should understand that the Strait of Hormuz would reopen only under arrangements determined by Tehran.
On Friday, prices fell further after US President Donald Trump said the Strait of Hormuz remained open and tankers were continuing to carry oil, easing concerns over supply disruptions.
Trump said millions of barrels of oil continued to flow through the strait despite tensions with Iran.
“The strait is open. The Strait of Hormuz is open. We have control, and we have the blockade,” Trump said in remarks at the White House. Oil Prices Dip on Fed Rates Uncertainty, Canada Tariff Retaliation
