Oil Set for Deep Weekly Loss as Hormuz Traffic Starts to Pick Up

Oil prices are poised for a significant weekly decline as shipping traffic through the Strait of Hormuz begins to normalize, following an interim peace deal between the United States and Iran. This development is easing concerns about a major disruption to global crude supply, which had previously caused the market's largest-ever shock. The easing of tensions has led to a decrease in the risk premium associated with oil shipments in the region. Analysts are closely monitoring the sustained impact of this de-escalation on global oil inventories and pricing. The market had experienced considerable volatility in recent weeks due to heightened geopolitical risks, impacting both Brent and WTI futures. This shift suggests a potential return to more stable supply dynamics, which could influence OPEC+ production decisions in the coming months. The reduction in shipping risks is a key factor contributing to the downward pressure on oil prices this week.