Oil Sinks Sharply as Tanker Traffic Through Hormuz Rises, Brent Posts 11% Weekly Loss

Global oil prices fell sharply at the end of the week as concerns over supply disruptions in the Middle East eased, with increased tanker traffic through the Strait of Hormuz signaling stable flows despite recent regional tensions.

Benchmark crude Brent Crude Oil dropped by more than 4% on Friday, settling at $71.99 per barrel, marking a steep weekly decline of roughly 11%, one of its sharpest losses in recent months. Meanwhile, West Texas Intermediate fell 3.74% to $69.23 per barrel, extending its weekly loss to nearly 10%.

Latest Oil Prices: 

WTI Crude • 69.23 -2.69 -3.74%

Brent Crude • 71.99 -3.27 -4.34%

Murban Crude • 66.54 -2.52 -3.65%

WTI Midland • 69.38 -2.81 -3.89%

Opec Basket • 77.37 -2.89 -3.60%

Indian Basket • 70.71 -4.57 -6.07%

Natural Gas • 3.279 -0.016 -0.49%

Gasoline • 2.957 -0.070 -2.32%

Heating Oil • 3.208 -0.090 -2.73%

The sell-off was driven largely by market perception that crude flows through the strategically vital Strait of Hormuz remain uninterrupted, despite an earlier incident involving an attack on a commercial vessel near Oman.

Analysts say the continued passage of tankers has significantly reduced fears of immediate supply shortages, reversing a short-lived risk premium that had pushed prices higher earlier in the week.

Market participants are increasingly pricing in the possibility of a near-term oversupply. Traders and analysts suggest that global production and inventory dynamics are shifting toward looser fundamentals, especially as demand signals from key Asian importers remain uneven.

The sentiment marks a sharp reversal from earlier concerns that geopolitical tensions could tighten supply conditions.

Additional downward pressure came after reports that Saudi Aramco resumed loading operations at its Ras Tanura export terminal following a months-long pause. The return of large-scale shipments from one of the world’s most important oil hubs reinforced expectations of abundant global supply.

At the same time, shipping data indicated rising crude flows through the Strait of Hormuz, reaching their highest levels since disruptions earlier in the year linked to regional conflict dynamics.

Despite easing short-term fears, geopolitical risk has not disappeared. Officials in Iran reiterated warnings regarding maritime security in the Strait of Hormuz, while Western and regional observers continue to monitor the security situation closely following recent maritime incidents in the area.

The strait remains one of the world’s most critical oil chokepoints, handling a significant share of global crude exports.

Some analysts argue the market is entering a phase of structural weakness rather than temporary correction.

“Markets are reacting to increasing crude flows and weakening demand signals,” said one energy strategist, adding that product markets may also face rising inventories in the weeks ahead.

Others caution that volatility could return quickly if geopolitical tensions escalate again or if shipping routes are disrupted.

The sharp weekly decline in oil prices reflects a market increasingly driven by shifting expectations around supply resilience rather than immediate physical shortages. With production stable and shipping flows recovering, traders appear to be reassessing risk premiums that had been priced into crude futures.

However, with tensions in key maritime corridors unresolved, analysts warn that sentiment could reverse rapidly if conditions deteriorate again in the Strait of Hormuz.