Crude Oil Prices Decline Amidst Supply Risk Concern
Oil prices edged lower on Friday as investors took profits after a strong weekly rally, while markets assessed signs of increased oil flows through the Strait of Hormuz and Washington’s intensifying economic pressure on Iran.
Brent crude futures for October delivery traded at $93.16 per barrel, down 0.66% from the previous close of $93.78. US benchmark West Texas Intermediate (WTI) crude futures for October delivery traded at $86.16 per barrel, down 0.77% from $86.83.
Brent was on track to gain more than 5% this week, marking its second consecutive weekly increase, after rising to a one-month high amid persistent concerns over oil supply disruptions stemming from the prolonged conflict in the Middle East.
Axios reported, citing US officials, that the US military had established a shipping corridor in and out of the Strait of Hormuz to facilitate tanker traffic, with 15 to 20 tankers passing through the southern channel each night. US officials estimated that around 10 million barrels of oil were reaching global markets each day through the corridor, about half the pre-war level.
Meanwhile, on Thursday, US Vice President JD Vance said Washington had entered a “new phase” in its war against Iran, with economic pressure now the “most effective tool” for achieving US objectives.
The comments came after US President Donald Trump announced on Wednesday what he called an “Economic D-Day” against Iran, vowing to cut off financial and commercial channels supporting Tehran and warning countries that provide Iran with an economic lifeline of severe consequences.
US Treasury Secretary Scott Bessent said the US would impose the “toughest sanctions in history” as part of the “greatest coordinated economic isolation in the history of the world.”
The UAE also announced on Tuesday that it suspended all trade exchanges and financial transactions with Iran “until further notice”, while China, a major buyer of Iranian crude, opposed Washington’s pressure and called for a diplomatic solution on Thursday.
The impact of the new sanctions on Iranian oil supplies remains uncertain, however, as the US already has extensive restrictions on Tehran’s oil exports.
Friday’s decline came as investors took profits after a strong rally, while markets continued to assess reports of increased traffic in the Strait of Hormuz and how Washington’s economic campaign against Iran could affect oil flows. Nigeria Exceeds OPEC Quota for Third Month
