Brent crude fell toward $88 a barrel on Friday, trimming gains from the previous trading session as investors monitored rising energy flows through the Persian Gulf and efforts to restore navigation in the Strait of Hormuz. Brent crude serves as the international benchmark for global oil prices.
Investment bank Goldman Sachs estimated that oil exports from the Persian Gulf have recovered to about two-thirds of their pre-war levels, driven by an increase in shipments through the strategic waterway.
Regional crude exports have risen to between 15 million and 16 million barrels per day, according to available estimates. However, total shipments remain about 7 million to 8 million barrels per day below the volume recorded before the conflict began.
The current recovery marks a substantial rebound from March, when regional exports dropped to a low of 5 million to 6 million barrels per day.
Revenue agreement between Iran and Oman
Meanwhile, Iran and Oman reached an agreement regarding the division of revenues connected to the strategic maritime route. Oman, situated on the southeastern coast of the Arabian Peninsula, shares jurisdiction over the Strait of Hormuz with Iran.
However, the agreement does not mean the Strait of Hormuz will reopen immediately. Tehran highlighted that the revenue arrangement provides no guarantee of an immediate reopening, maintaining uncertainty across energy markets where the strait serves as a critical transport hub for global oil and natural gas.
United States stance on deal terms
The administration of US President Donald Trump informed mediators that Washington is not interested in returning to the terms of a preliminary deal reached with Iran in June, which later collapsed.
Washington's stance introduces further uncertainty into efforts to negotiate a new arrangement between the two sides. The oil market remains particularly sensitive to developments surrounding the Strait of Hormuz.
For investors, the trajectory of exports from the Persian Gulf and the speed with which navigation is restored through the strait will remain decisive factors for crude oil price movements.
