International benchmark Brent crude futures slipped 0.6% to $107.36 per barrel on Friday, while U.S. WTI futures declined 0.8% to $93.72 per barrel. The moves followed comments from President Donald Trump during a Cabinet meeting on Thursday, in which he described Iran\u2019s decision to permit tankers through the Strait of Hormuz as a goodwill gesture.<\/p>\n
Trump said Iran had initially proposed to allow eight \u201cboats of oil\u201d to pass, framing it as evidence that Tehran was \u201creal and solid\u201d and engaged diplomatically. He stated that the shipment was later increased to 10 vessels after what he described as an apology from Iran, calling the overall move a \u201cpresent\u201d to the United States.<\/p>\n
The remarks provided further detail on Trump\u2019s earlier, less specific statement this week that Iran had given the United States a \u201cpresent\u201d related to oil and gas.<\/p>\n
Markets have been closely tracking developments in the Strait of Hormuz, a critical transit point for global crude flows, for signs of either disruption or de-escalation. According to estimates cited from Rystad Energy, nearly 17.8 million barrels per day of oil and fuel flows through the strait have been disrupted, with close to 500 million barrels of total liquids lost so far.<\/p>\n
Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy, said the oil market had \u201cabsorbed\u201d the earlier disruption in the Strait of Hormuz, supported by pre-war surplus, crude-on-water, and policy barrels that acted as a temporary buffer. She stated that this phase is now ending, and that the global system has shifted from \u201cbuffered to fragile\u201d after weeks of supply losses and inventory drawdowns, leaving limited capacity to absorb additional shocks.<\/p>\n
The combination of a tentative easing in shipping constraints and growing structural fragility in supply conditions is contributing to ongoing volatility in energy prices as tensions between Washington and Tehran continue.<\/p>\n
Why did oil prices fall on Friday?<\/strong> What were the latest Brent and WTI prices mentioned?<\/strong> How disrupted are flows through the Strait of Hormuz?<\/strong> What is the current condition of the global oil market according to Rystad Energy?<\/strong>
Oil prices fell after President Donald Trump said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz as a \u201cpresent\u201d to the United States, suggesting a tentative easing of tensions at the key oil transit chokepoint.<\/p>\n
Brent crude futures were reported at $107.36 per barrel, down 0.6%, while U.S. West Texas Intermediate futures were at $93.72 per barrel, down 0.8%.<\/p>\n
Rystad Energy estimated that nearly 17.8 million barrels per day of oil and fuel flows through the Strait of Hormuz have been disrupted, with close to 500 million barrels of total liquids lost so far.<\/p>\n
Rystad Energy assesses that the market has moved from \u201cbuffered to fragile,\u201d as earlier buffers such as pre-war surplus, crude-on-water, and policy barrels have been drawn down, reducing the system\u2019s ability to absorb further supply shocks.<\/p>\n