Oil prices declined on Friday amid expectations of increased global supply following the resumption of tanker traffic through the Strait of Hormuz after the United States and Iran signed a memorandum of understanding.
The renewed shipping activity through one of the world’s most strategic energy corridors has eased concerns over supply disruptions.
Brent and WTI Extend Losses
Brent crude futures fell by 54 cents, or 0.68 percent, to 78.31 dollars per barrel.
US West Texas Intermediate (WTI) crude declined by 46 cents, or 0.60 percent, to 76.14 dollars per barrel.
Both benchmarks had already dropped to their lowest levels since early March during Thursday’s trading session.
The declines followed reports that several oil tankers successfully crossed the Strait of Hormuz, signaling a partial restoration of energy flows.
Strait of Hormuz Back in Focus
The Strait of Hormuz is a critical maritime route for global oil exports.
The resumption of tanker traffic after the preliminary US–Iran agreement has reduced geopolitical risk premiums that had supported prices during the conflict period.
Analysts note that increased supply expectations, combined with relatively stable demand, are exerting downward pressure on prices.
US Gasoline Prices Drop Below Four Dollars
In the United States, the average price of a gallon of gasoline fell below four dollars for the first time since March.
The decline was attributed to the preliminary agreement between Washington and Tehran and the resumption of oil shipments via the Strait of Hormuz.
However, gasoline prices remain approximately 25 percent higher than they were at the same time last year, according to the Associated Press.
Despite the recent drop, prices are still above pre-war levels, when Brent crude traded near 70 dollars per barrel.
Ongoing Economic Pressures
Observers warn that inflationary pressures may persist throughout 2026 due to:
– Inventory shortages
– Supply chain disruptions linked to the conflict
– Higher agricultural input costs
– Limited US refining capacity
Farmers, in particular, have faced increased fertilizer costs, raising expectations of higher food prices later this year.
Although oil prices have retreated significantly from peak levels above 100 dollars per barrel during the height of the conflict, energy markets remain sensitive to geopolitical developments.
Conclusion:
Oil prices have fallen below 80 dollars per barrel for Brent as markets respond to improving supply prospects and renewed tanker movements through the Strait of Hormuz.
While the US–Iran memorandum has helped calm energy markets, price stability will depend on continued geopolitical de-escalation and sustained supply flows.
