Oil prices declined on Friday amid coordinated international moves to ease supply concerns and ensure safe transit through the critical Strait of Hormuz. Brent crude futures dropped $1.24, or 1.1%, to $107.41 per barrel, while US West Texas Intermediate (WTI) fell $1.24, or 1.3%, to $94.90 per barrel.
The retreat came after weeks of volatility driven by geopolitical tensions in the Middle East, including attacks on energy facilities that had previously pushed prices higher.
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Allied Efforts to Secure Strait of Hormuz
Leading European nations including Britain, France, Germany, Italy, the Netherlands, along with Japan, issued a joint statement expressing readiness to support safe passage for ships through the Strait of Hormuz. This vital chokepoint handles about 20% of the world’s oil and liquefied natural gas (LNG) flows.
The pledge aims to reduce risks of disruptions that have contributed to recent supply fears and price spikes.
US Signals Supply Boost Measures
The United States outlined steps to increase global oil availability. Treasury Secretary Scott Bessent indicated potential removal of sanctions on Iranian oil currently stranded on tankers, alongside possible further releases from the US Strategic Petroleum Reserve (SPR) to curb soaring prices.
Additionally, North Dakota’s crude output is expected to rise as operators restart inactive wells following the easing of winter restrictions, though this depends on sustained high prices and industry budgets.
These developments offset earlier gains triggered by regional conflicts, including Iran’s strikes on Gulf state facilities that halted some production. US President Donald Trump emphasized restraint, stating he advised against attacks on Iranian energy infrastructure.
While Brent remains on track for a weekly rise of over 4%, WTI faces its first weekly decline in five weeks, with the widest discount to Brent in 11 years. Market analysts view these supply-side actions as a stabilizing force, though long-term prices hinge on geopolitical outcomes and sustained production recovery.