Oil prices extended their decline on Friday as more oil tankers resumed transits through the strategically important Strait of Hormuz, easing fears of supply disruptions despite an attack on a vessel in the Gulf of Oman.
International benchmark Brent crude futures for August fell 3.2 per cent to $72.83 per barrel, extending earlier losses, while U.S. West Texas Intermediate crude for August dropped 3.2 per cent to $69.62 a barrel.
The decline in oil prices comes as investors closely monitor developments in the Middle East, weighing whether recent diplomatic efforts will ease tensions and reduce the risk of supply disruptions.
A U.S. official told MS NOW that Iran was responsible for an attack on a cargo vessel near the coast of Oman in the Strait of Hormuz.
The ship, which was sailing under the Singapore flag, reported no casualties or environmental damage, according to the United Kingdom Maritime Trade Operations.
“Following the launch of the IMO’s evacuation plan, through which several vessels have already been successfully evacuated, I have decided to temporarily pause its implementation in order to reconfirm that the necessary safety guarantees continue to be in place for the ships on our evacuation list and all those in the region,” said Arsenio Dominguez, secretary-general of the International Maritime Organization.
Meanwhile, tensions in the Middle East remained elevated as Iran and the United States disagreed over the use of funds covered under a memorandum of understanding between the two countries, underscoring persistent geopolitical risks despite ongoing diplomatic engagement.
