Oil prices extended losses on Friday as improving shipping activity through the Strait of Hormuz helped ease earlier supply concerns, despite renewed security tensions in the key waterway.
Brent crude fell to around $72.54 per barrel, down about 3.6%, as traders focused on stronger crude flows from the Middle East rather than a reported maritime incident off the coast of Oman involving a vessel struck by an unidentified projectile.
The incident briefly revived worries about security in the Strait of Hormuz, a critical route for global oil shipments, and prompted some vessels to adjust course. However, shipping activity through the waterway has largely recovered in recent days, easing fears of prolonged disruption.
Market participants said the return of normal tanker traffic, combined with higher output from Gulf producers, has helped offset the geopolitical risk premium that had supported prices in recent weeks.
Even so, the region remains sensitive to developments, with traders closely watching talks between Washington and Tehran over a longer-term agreement, even as negotiations remain ongoing.
Brent has fallen sharply over the past month, though it remains above year-ago levels, reflecting a broader shift in sentiment as supply conditions improve and immediate disruption risks ease.
Analysts say the market is increasingly being driven by fundamentals rather than security fears, though they warn that any renewed escalation in the Strait of Hormuz could quickly reverse recent price declines.
