FX.co ★ Oil Heads for Sharp Weekly Drop

Crude oil traded around $76 per barrel on Friday and was on track for a weekly loss of about 10%, as investors reacted positively to improving shipping conditions in the Strait of Hormuz following the US–Iran interim peace agreement. The deal ended a prolonged conflict that had caused the largest recorded disruption to global oil supplies. The US Central Command said it has lifted restrictions on traffic to and from Iranian ports and coastal waters, while the Joint Maritime Information Center advised vessels transiting the strait to sail closer to Oman’s coastline to reduce the risk from mines. Tankers carrying previously stranded crude began leaving the waterway on Thursday, and Kuwait announced plans to ramp up production. As a result, oil prices have now given up nearly all the gains accumulated since the Middle East conflict began in late February.