Oil falls as Strait of Hormuz traffic rises
The oil market experienced a significant decline during the week, as navigation through the Strait of Hormuz returned to normal following the signing of a tentative peace agreement between the United States and Iran. This led to a drop in Brent crude prices to around $79 per barrel, a 9% decrease, with expectations that oil flows would recover to only about 70% of pre-war levels. Additionally, the U.S. sanctions on Iranian ports were lifted, resulting in ships leaving the Strait. Meanwhile, countries like Kuwait began gradually increasing their production. However, reopening the Strait remains a lengthy and complex process that requires careful coordination, infrastructure repairs, and mine clearance operations.
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