FX.co ★ Brent Heads for Sharp Weekly Drop

Brent crude rose to around $80 per barrel on Friday after planned talks between the US and Iran in Switzerland were canceled, as confirmed by the Swiss Foreign Ministry. At the same time, Israel continued to strike Hezbollah targets in Lebanon. Nonetheless, oil prices remained on track for a sharp weekly decline, as investors reacted positively to improving shipping conditions in the Strait of Hormuz following the implementation of the US–Iran interim peace agreement. The US Central Command announced the removal of restrictions on traffic to and from Iranian ports and coastal waters, while the Joint Maritime Information Center advised vessels transiting the strait to navigate closer to Oman’s coastline to reduce the risk from mines. Tankers carrying previously stranded crude began exiting the waterway on Thursday, and Kuwait said it would start increasing production. As a result, oil prices have now given up nearly all the gains accumulated since the Middle East conflict erupted in late February.