Oil falls over 8% this week as traders eye Hormuz reopening deal
Crude prices dropped more than 8% over the past week, buoyed by market optimism that a deal to reopen the Strait of Hormuz could be reached.
Oil prices slipped more than 8% over the past week, as traders placed bets on a possible agreement to reopen the Strait of Hormuz.
The decline was reflected across major benchmarks, with both Brent crude and U.S. West Texas Intermediate recording weekly losses exceeding 8%.
The Strait of Hormuz, a narrow waterway between Iran and Oman, carries roughly a fifth of global oil shipments, making its operational status a key driver of market sentiment.
Recent geopolitical friction in the region had raised fears of a closure, prompting earlier price spikes; the current slide suggests that the risk premium is receding.
Market participants said the prospect of a diplomatic deal to restore free passage is tempering demand for a risk premium, leading to the observed price drop.
If a reopening agreement is reached, analysts expect a modest easing of supply concerns, which could further support lower price levels.
Nevertheless, traders remain cautious, noting that any delay or breakdown in negotiations could quickly reverse the week's gains.
David reports on energy, metals and agricultural markets, tracking how supply signals and safe-haven demand move prices across the commodities complex.
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