Oil prices edged lower on Thursday as markets weighed easing tensions around the Strait of Hormuz against growing risks to Russian energy supplies from the Russia-Ukraine conflict.
West Texas Intermediate (WTI) traded below $82 a barrel, extending its weekly decline to about 6%, while Brent settled below $88.
Prices had initially risen on reports of a possible escalation in Ukraine but reversed after signs of progress between Iran and Oman over navigation through Hormuz.
Iran’s military said it had reached a revenue-sharing agreement with Oman concerning the strategic waterway.
Although Tehran said the deal does not necessarily mean an immediate reopening, it raised hopes that oil flows could improve. US President Donald Trump said 10 million barrels of oil left Hormuz on Tuesday.
However, the supply outlook remains uncertain. Ukrainian strikes on Russian refineries and ports have disrupted fuel production and could limit Moscow’s ability to redirect crude exports.
Oil remains more than 40% higher this year despite the recent decline, reflecting supply disruptions linked to the six-month Persian Gulf conflict.
Ship-tracking data indicates flows through Hormuz have fallen to about one-quarter of pre-war levels since Iran moved to restrict the waterway.
