Crude oil fell nearly 4% toward $69 a barrel on Friday, its lowest level since February 27, as shipping activity through the Strait of Hormuz accelerated. Volumes jumped as vessels began openly transiting the key waterway following progress toward a US–Iran peace agreement, restoring Persian Gulf exports to roughly 75% of their prewar levels.
A key signal of a regional production ramp-up came as Saudi Arabia resumed loading tankers at its Ras Tanura terminal, one of the world’s largest oil export facilities. The move underscored expectations of higher output from the kingdom.
The price decline followed a brief 2% rebound on Thursday, after the container ship Ever Lovely was hit by a projectile southeast of Oman. Despite the incident, President Donald Trump confirmed that the strait remains open and that marine traffic has continued.
Middle Eastern producers, including the United Arab Emirates, Kuwait, and Qatar, are all increasing supply, even as they face challenges securing enough tankers to move the additional crude. Iraq, meanwhile, is pressing for a higher OPEC production quota to make up for oil sales lost during the war.
Overall, crude prices were on track for a 10% weekly decline, the steepest drop in a month.
