On the NYMEX in New York, West Texas Intermediate (WTI) crude for August delivery edged up by 0.54%, trading at $69.06 per barrel. Meanwhile, September Brent crude on the ICE platform gained 0.67%, reaching $72.28 per barrel.
The upward movement followed a Thursday warning from Iran’s joint military command, stating that all oil tankers navigating the Strait of Hormuz must strictly adhere to authorized shipping lanes or face a decisive military response. The military emphasized that any deviation from navigation protocols would trigger an immediate reaction, putting non-compliant vessels at risk.
This statement followed a report from the US Central Command (CENTCOM) regarding a summit between American and Middle Eastern military leaders, who reaffirmed their shared commitment to ensuring unhindered transit through the Strait. Seeking dominion over the waterway, Iran previously targeted a cargo vessel operating outside its approved routes, sparking the first military exchange between Washington and Tehran since their ceasefire.
Concurrently, US President Donald Trump stated in a CNBC interview that Iran has conceded to „virtually everything” Washington requires, though negotiations remain active. Trump claimed Iran’s military capabilities have been thoroughly crippled, clarifying that he does not view the operations as a full-scale war. While evading direct questions about resuming conflict if talks collapse, he likened Iran to a „spoiled child” adapting to stricter parental boundaries.
Meanwhile, Citigroup Inc. analysts noted that oil market fundamentals are recovering rapidly as shipping disruptions in the Strait of Hormuz fade and transit returns to normal. However, Citi emphasized that the US-Iran peace process remains fragile, with unresolved disputes over transit fees and waterway administration. Consequently, Citigroup forecasts that Brent crude prices will decline to a range of $60-65 per barrel by the end of 2026.
