Oil prices set for fourth weekly decline as Hormuz flows

Oil prices were poised for a fourth consecutive weekly loss on Friday, trading near their lowest levels since before the U.S.-Israeli conflict with Iran began in late February. The decline reflects a significant easing of supply concerns as shipping activity recovers through the critical Strait of Hormuz, bolstered by ongoing diplomatic negotiations between the United States and Iran.

In early trading Friday, Brent crude hovered around $71.96 per barrel, while West Texas Intermediate traded just below $70. Trading was subdued with U.S. markets closed for the Independence Day holiday weekend. The benchmarks have slumped over the past three weeks, erasing the price gains seen during the period of heightened military tensions.

The key driver of the market shift has been the tentative reopening of the Strait of Hormuz, a vital chokepoint for global oil shipments. The U.S. and Iran signed a memorandum of understanding to negotiate a broader deal, which has prompted Gulf producers to accelerate exports. Analysts say the prospect of more oil reaching the market has decisively turned sentiment bearish.

Saudi Arabia has moved over 10 million barrels of crude through the strait in recent...