Oil prices fell in Friday trading at settlement after the latest round of clashes between the United States and Iran, amid traders’ optimism regarding the resumption of navigation in the Strait of Hormuz, but prices achieved sharp weekly gains at the end of the session.
Brent crude futures fell 29 cents, or 0.38%, to $76.01 per barrel upon settlement, and US West Texas Intermediate crude lost 67 cents, or 0.93%, to $71.41.
Over the course of the week, Brent rose by about 5.50%, and WTI rose by about 4%.
With the end of tit-for-tat air strikes, and the promise of talks between the US and Iran resuming next week, traders are looking forward to the reopening of the Strait of Hormuz.
“It is surprising, however, that oil prices are declining after rising to nearly $76 a barrel, even after the Strait of Hormuz is closed again, mainly due to confidence that US military power will not allow the Strait of Hormuz to be closed for an extended period,” Phil Flynn, an analyst at Price Futures Group, said in a note.
