Crude oil steadies but heads for weekly loss as Hormuz flows patchy

Oil prices were largely flat on Friday but on course for a sharp weekly drop as traders weighed stalled US-Iran talks against an uneven recovery in shipping through the Strait of Hormuz. Brent crude futures were down 4 cents at $89.66 a barrel, while US West Texas Intermediate fell 32 cents to $83.21. Both benchmarks were set to end the week lower, with Brent down 5.1% and WTI declining 4.5%.

Preliminary data showed seven commodity vessels transited Hormuz on Thursday, down from 17 a day earlier and below the 10-day average of 15. Goldman Sachs estimated Gulf exports at 15 million to 16 million barrels per day, roughly 7 million to 8 million barrels below pre-war levels but above the March trough. In India, MCX crude futures for September delivery fell Rs 49, or nearly 1%, to Rs 7,915 per barrel.

Analysts said the US shift from military to economic sanctions on Iran, and a partial revenue-sharing arrangement between Iran and Oman for Hormuz traffic, had reduced risk premiums. However, a full deal remains blocked. The market is watching OPEC developments and Chinese demand, both linked to the wider conflict.