West Texas Intermediate (WTI) oil eased lower during Friday’s Asian session, dropping to around $75.10 a barrel and erasing the modest gains from the prior day. The U.S. benchmark is heading for a steep weekly decline of about 9.5% as market participants respond to rapidly improving shipping conditions in the Strait of Hormuz. The price slide follows a newly implemented interim peace agreement between the United States and Iran, which has substantially reduced geopolitical risk premiums in the energy market.
The diplomatic breakthrough ends a prolonged regional conflict that had caused the largest oil supply disruption on record. Signaling a swift return to normal operations, U.S. Central Command (CENTCOM) announced the removal of all maritime restrictions on vessels heading to and from Iranian ports and coastal waters. To further ensure safety, the Joint Maritime Information Center advised commercial ships transiting the vital waterway to shift their routes nearer to Oman’s coastline, thereby minimizing any residual threat from sea mines.
Market supply is already increasing as tankers carrying previously stranded crude began exiting the chokepoint on Thursday, while Kuwait simultaneously unveiled plans to boost its domestic output. As a result, global oil prices have erased nearly all of the risk‑driven gains accrued since the Middle East flare‑up began in late February. U.S. Vice President JD Vance underscored the shift, noting that 12.5 million barrels of oil moved through the strait overnight without any vessel being targeted by Iranian forces.
In Tehran, Iran’s Supreme Leader Mojtaba Khamenei formally endorsed the long‑awaited accord, though he framed it with defiant language. He accused U.S. President Donald Trump of sealing the deal out of sheer “desperation” and warned that, while the interim agreement opens the door for direct, in‑person negotiations between Washington and Tehran, the talks should not be construed as an acceptance of the American position.
