NEW YORK / RankWire.AI / – Oil prices surged by over 4% on Friday. Brent crude crossed the $88 per barrel threshold, with both key benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, to settle at $88.10 a barrel. U.S. West Texas Intermediate (WTI) rose $3.54, or 4.48%, to close at $82.49. Both contracts experienced approximately a 16% gain over the week. Brent marked its third consecutive weekly rise, while WTI posted its second.
This upward movement coincided with a significant decrease in commercial shipping through the Strait of Hormuz. The waterway continues to serve as a crucial route for global oil and gas shipments. On Thursday, only three cargo ships traversed the strait, the lowest daily count since May. On Wednesday, eleven vessels passed through, compared to an average of 125 days prior to the current conflict. No very large crude carriers or liquefied natural gas tankers crossed for a second consecutive day.
Throughout the week, the U.S. and Iran intensified attacks on infrastructure, while restrictions again curtailed shipping activity in the Gulf. Iraq temporarily halted oil exports at its Basra terminal following a drone attack on a tanker, though loadings later resumed. Earlier this week, two large crude carriers, each carrying about 2 million barrels, appeared outside Hormuz after departing the Gulf. These developments coincided with the largest daily gains of the week for crude futures and a rise in energy prices across global markets.
Traffic through Hormuz declines as crude prices rise
According to the International Energy Agency, Gulf oil exports increased by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Nonetheless, this figure remains below the pre-conflict level of 24 million barrels per day. The monthly increase was mainly driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels a day but remained 11.4 million barrels below earlier levels. These figures reflect only a partial recovery before the recent downturn in vessel traffic.
The IEA also indicated that global oil inventories rose by 21 million barrels in June, marking the first monthly increase in four months. Waterborne oil stocks increased by 117 million barrels, while onshore inventories declined by approximately 96 million barrels. Government releases contributed 44 million barrels to the onshore stock reduction. Exports of refined products and liquefied petroleum gas from the Gulf stayed below half of pre-conflict levels, whereas crude exports reached nearly 75% of previous rates.
Weekly increases push benchmarks higher
The U.S. Energy Information Administration reported that Brent’s spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but recovered during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels per day during Q2. It also noted that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
On Friday, Brent closed $12.09 higher than its July 10 close of $76.01. WTI ended $11.08 above its previous week’s close of $71.41. These changes represented weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy shares were the only major sector in the U.S. stock market to finish higher on Friday. Both oil contracts closed near their session highs, ending a week characterized by sharp price increases and reduced tanker activity through Hormuz.