Oil prices dipped during Asian trading on Friday, continuing their trajectory toward a third consecutive weekly decline. Improved navigation through the Strait of Hormuz and optimism over a U.S.-Iran peace agreement outweighed concerns sparked by an attack on a cargo vessel near Oman.
As of 03:21, Brent crude futures for August delivery were down 0.5% at $74.89 per barrel, while West Texas Intermediate (WTI) crude futures also slipped 0.5% to $71.58 per barrel.
By the end of the week, both benchmark grades—Brent and WTI—are at risk of losing approximately 7%, extending the downturn that began after a preliminary U.S.-Iran peace accord was reached last week.
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In the previous session, both benchmarks gained more than 2% after a projectile struck a cargo vessel passing near the Strait of Hormuz, reigniting concerns over the security of one of the world’s most critical energy transit routes.
Following the assault, the UN International Maritime Organization halted efforts to ensure the safe passage of ships and crews in the region.
U.S. officials later stated that Iran opened fire on the vessel, casting doubt on the strength of the preliminary peace agreement between Washington and Tehran, which had reopened the waterway after months of disruptions.
Despite the latest incident, tanker traffic through the Strait of Hormuz continues to recover. This week, oil shipments through the strait reached their highest level since the outbreak of the conflict earlier this year.
Brent crude has notably retreated from peak levels above $90 per barrel recorded earlier this month, as traders increasingly bet that a broader normalization of U.S.-Iran relations will allow stable supplies from the region to resume.
Analysts note that many vessels still avoid Iranian waters and opt for routes positioned closer to Oman, highlighting ongoing security risks.
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