Global oil prices are heading for their biggest weekly decline in months after shipping through the Strait of Hormuz resumed following a temporary agreement between the US and Iran. This was reported by Bloomberg, writes UNN.
Details
West Texas Intermediate crude for August delivery fell to around $75 per barrel, losing more than 9% for the week. Brent dropped below the $80 per barrel mark. On Thursday, vessels that had previously been unable to leave the region began transiting the strait, and Kuwait announced its intention to increase production.
Markets react to easing of risks
After the lifting of the shipping blockade, fears of a major oil shortage on the global market have significantly diminished. The Strait of Hormuz is one of the world's most important energy routes, through which about 20% of global oil supplies pass in peacetime.
First LNG tanker transits the Strait of Hormuz following US-Iran agreement18.06.26, 06:38
Markets are thrilled with what is happening as oil prices fall sharply and stocks surge
Recovery may take time
Despite the positive market reaction, experts warn that a full restoration of traffic through the Strait of Hormuz will take time due to the need to clear the waterway of mines and restore logistics chains.
Everyone would like to get ships on the route, but the mood is that you don't necessarily have to be first
The US officially lifted the blockade of Iran18.06.26, 20:24