Oil Prices Slide to Four-month Low as Saudi, Iran Exports Rise

Global oil prices fell to their lowest levels in four months as rising crude exports from Saudi Arabia and Iran, alongside improving shipping activity through the Strait of Hormuz, eased concerns over supply disruptions and weakened the geopolitical risk premium in the energy market.

Brent crude settled around $71 per barrel on Friday, while the United States benchmark, West Texas Intermediate (WTI), traded near $69 per barrel, marking a sharp weekly decline and extending losses from the highs recorded during recent tensions in the Middle East.

The latest price retreat reflects growing confidence among traders that crude supplies from the Gulf region will continue to flow uninterrupted following the easing of tensions between the United States and Iran.

Maritime intelligence firm TankerTrackers.com disclosed that Iran exported about 40 million barrels of crude oil between June 15 and June 27, with approximately 20 million barrels shipped on June 19 alone, highlighting a significant acceleration in the country’s oil exports after weeks of disruption around the Strait of Hormuz.

The surge in Iranian exports came as vessel traffic through the strategic waterway continued to recover following the interim agreement between Washington and Tehran, which reduced immediate security concerns and encouraged shipping companies to resume operations.

Data from maritime analytics firm Kpler showed that commercial and energy-related vessel movements through the Strait of Hormuz remained active, with 31 verified crossings recorded on June 23.

According to Kpler, west-to-east movements dominated traffic flows, while Iranian, Omani and International Maritime Organisation-designated routes remained operational under the existing understanding between the United States and Iran.

Although the shipping route has largely reopened, analysts noted that some uncertainty remains regarding long-term stability beyond the current diplomatic arrangement.

The recovery in shipping activity has also extended to liquefied natural gas cargoes, with several LNG tankers re-entering the Persian Gulf to lift exports.

Kpler reported that multiple Qatar-linked vessels entered the Gulf during the past week, while a Chinese LNG carrier also transited the Strait of Hormuz as exporters moved to take advantage of improved conditions.

Energy producers in the Gulf region are also ramping up exports. Saudi Arabia has resumed loadings at its Ras Tanura export terminal, while Qatar and Abu Dhabi National Oil Company are seeking to increase shipments following the reduction in geopolitical risks.

The Strait of Hormuz remains one of the world’s most critical energy corridors, accounting for roughly one-fifth of global oil supplies and a substantial share of liquefied natural gas exports.

Analysts said the restoration of tanker traffic and increased crude exports from major Gulf producers have significantly reduced supply concerns that previously supported higher oil prices.

They noted that the market is now shifting its focus from geopolitical tensions to supply fundamentals, with higher export volumes from Saudi Arabia and Iran adding downward pressure to prices.

However, traders remain cautious as developments in the Middle East, shipping security risks and the durability of the US-Iran understanding are expected to continue influencing oil market sentiment in the coming weeks.