Oil heads for 3rd weekly loss on easing Middle East supply risks

Oil prices eased in Asian trade on Friday and remained on track for a third consecutive weekly decline, as improving traffic through the Strait of Hormuz and optimism over a U.S.-Iran peace agreement outweighed renewed concerns after a cargo ship was attacked near Oman.

As of 20:21 ET (00:21 GMT), Brent Oil Futures expiring in August fell 0.5% to $74.89 per barrel, while West Texas Intermediate (WTI) crude futures also slippe 0.5% to $71.58 per barrel.

For the week, both Brent and WTI were set to post losses of roughly 7%, extending declines triggered by last week’s preliminary U.S.-Iran peace deal.

Both benchmarks had gained more than 2% in the previous session after a projectile struck a cargo vessel transiting near the Strait of Hormuz, reviving fears over the security of one of the world’s most important energy chokepoints.

The attack prompted the United Nations’ International Maritime Organization to suspend efforts aimed at facilitating safe passage for vessels and crews in the region.

U.S. officials later said Iran had fired on the ship, raising questions about the durability of a preliminary peace accord between Washington and Tehran that had helped reopen the waterway after months of disruption.

Despite the latest incident, tanker traffic through Hormuz has continued to recover. Crude shipments through the strait climbed this week to their highest level since the conflict began earlier this year.

Brent crude has retreated significantly from peaks above $90 a barrel seen earlier in the month, as traders increasingly bet that a broader U.S.-Iran settlement could restore more stable flows from the region.

Analysts noted that many vessels are still avoiding Iranian waters and using routes closer to Oman, reflecting lingering security risks.