Crude oil futures slipped on Friday morning as shipping traffic through the Strait of Hormuz improved following the signing of an interim peace deal between the US and Iran, according to The Hindu BusinessLine. August Brent oil futures on ICE were at $77.13, down 0.90%, while July West Texas Intermediate (WTI) crude oil futures on NYMEX were at $76.07, down 0.69%.
Details of the Peace Deal and Blockade Lifting
In a post on X, US Central Command stated that US forces lifted the blockade on all maritime traffic entering and exiting Iranian ports and coastal areas, in accordance with the US President’s direction, as reported by The Hindu BusinessLine. American forces are not impeding the transit of vessels to or from Iranian ports, and all US military blockade enforcement efforts have ceased. The statement added: “Our great Naval Ships will remain in the general area to make sure that all aspects of the agreement are adhered to, obeyed and in full force and effect.”
Trump’s Reaction and Market Sentiment
US President Donald Trump, in a post on Truth Social, said: “The United States is committed to PEACE, and we encourage everyone in the Middle East Region to maintain their commitment to allowing our negotiations to beautifully unfold. The Markets are loving what is happening with Oil Prices way down, and Stocks way up. We expect a complete Ceasefire on all fronts, including Lebanon, Hezbollah, and Israel.”
Continued Conflict in Lebanon
Despite the US-Iran deal, reports indicated that Israel continued its fight against the Iranian-supported Hezbollah militant group in Lebanon. Notably, Israel was not included in the interim peace talks between the US and Iran, according to The Hindu BusinessLine.
Price Summary
| Contract | Exchange | Price | Change |
|---|---|---|---|
| August Brent (ICE) | ICE | $77.13 | -0.90% |
| July WTI (NYMEX) | NYMEX | $76.07 | -0.69% |
| July Crude (MCX) | MCX | ₹7,120 | +0.94% |
| August Crude (MCX) | MCX | ₹7,071 | +0.97% |
The improvement in Hormuz shipping traffic, a key chokepoint for global oil shipments, directly contributed to the decline in crude oil futures. The relative peace deal only partially addresses regional tensions, as Israel’s ongoing operations against Hezbollah remain unresolved. Traders will be watching for further developments on the ceasefire front.
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