Oil falls as Hormuz shipping resumes after U.S.-Iran clashes

Highlights

Brent declined 0.98% to $72.89 a barrel.
The U.S. and Iran agreed to pause hostilities after weekend strikes.
Commercial traffic through Hormuz has resumed but remains below normal.
Traders are balancing supply recovery against renewed security risks.

Prices retreat after a brief risk rally

West Texas Intermediate (WTI) crude fell 0.85% to $69.65 a barrel, while Brent declined 0.98% to $72.89 a barrel, according to market data updated at 09:04 GMT+3. The move came after oil had briefly gained on renewed fighting near the Strait of Hormuz, one of the world’s most important energy chokepoints, Bloomberg reports.

The weekend clashes followed attacks on commercial vessels in the area, including the Panamanian-flagged tanker Kiku, which was carrying more than 2 million barrels of crude, according to U.S. Central Command. The U.S. responded with strikes on Iranian military targets near the strait, while Iran said it had attacked U.S. military targets in Kuwait and Bahrain.

Despite the escalation, a U.S. official said Sunday that Washington and Tehran had agreed to pause hostilities for now and allow commercial vessels to move freely. Technical talks on a broader memorandum of understanding are expected to continue.

Hormuz flows remain the market focus

Shipping through Hormuz has resumed, though activity remains uneven. Tracking data showed several vessels moving through the waterway over the weekend, including empty very large crude carriers entering the Persian Gulf and laden tankers leaving.

That inbound traffic is important for oil producers because empty tankers are needed to load crude and help restart supply after months of disruption. During the U.S.-Iran war, traffic through the strait had collapsed to a trickle. The partial reopening has helped remove some of the risk premium that had supported oil prices earlier in the conflict.

Still, shipowners and insurers remain cautious. The Joint Maritime Information Center raised its regional threat level after recent attacks, and some vessels that had abandoned crossings have not yet made new attempts.

A fragile balance for energy markets

The price decline suggests that traders are treating the latest U.S.-Iran exchange as a contained risk rather than the start of a wider supply shock. As long as vessels continue to transit Hormuz, the market may keep removing part of the war premium from crude prices.

That balance remains fragile. Hormuz connects Gulf producers to global markets, and even a limited pullback by shipowners, insurers, or charterers could tighten supply quickly. For now, Brent below $73 and WTI below $70 show that physical flows are carrying more weight than geopolitical headlines.

Earlier, we reported that Trump says the Strait of Hormuz will remain open and toll-free.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.