Crude oil prices remained under pressure on Friday as tanker traffic through the Strait of Hormuz continued its recovery and diplomatic engagement between the US and Iran indicated signs of progress. Brent crude is on track for a fourth consecutive weekly decline, marking its longest losing streak since August 2024. Brent crude remained close to the $71-a-barrel threshold after a brief decline below that level in the prior session, while the US benchmark West Texas Intermediate was trading at approximately $68 a barrel.

The commodity has retreated sharply from the $125-a-barrel highs touched during the peak of the Gulf conflict, as higher output from regional producers and improved supply expectations followed the preliminary memorandum of understanding signed by the US and Iran in mid-June. Saudi Arabia, the region’s largest oil producer, has reinstated exports to approximately 90 percent of pre-conflict levels for the majority of this week. A substantial portion of the kingdom’s crude shipments transits the Strait of Hormuz.

In remarks, US President Donald Trump indicated that discussions with Iran are ongoing and asserted that Tehran “has agreed to just about everything we need.” However, source reported that Iran remains unwilling to abandon its demand for control over the Strait of Hormuz and intends to continue charging transit tolls after the 60-day deadline expires. Supply has risen not only from Saudi Arabia but also from the United Arab Emirates, which is no longer a member of OPEC, and from Iran following the sanctions relief obtained under the preliminary MoU.