Crude oil extended its decline on Friday, shedding more than three percent by early evening GMT, as market participants grew increasingly weary of the volatile signals coming from U.S.-Iran negotiations, according to Ship & Bunker.
Brent crude fell to around $87.58 per barrel as of 1942 GMT, deepening its weekly loss amid a backdrop of conflicting diplomatic signals and shifting sentiment.
Trading Fatigue Sets In
A senior executive from a major trading desk captured the mood bluntly, telling media: “People are exhausted by this chaos, they want this to be over; you cannot trade futures without being constantly burned in an environment when the messaging changes every other hour.”
Ship & Bunker notes the remarks featured in a Reuters report highlighting how investors have grown “increasingly wary of committing cash to an asset that has become hostage to U.S. president Donald Trump’s daily social media posts on the Iran war.” Supporting that narrative, open interest in Brent has dropped by nearly 17 percent this year — the fastest pace of decline since at least 2009, according to data cited in the Reuters report.
Mixed Signals from Both Sides
Despite the broad sell-off, the session was far from one-directional. Iran’s foreign minister Abbas Araghchi posted on social media that a Memorandum of Understanding between the U.S. and Iran had “never been closer,” briefly lifting sentiment.
Haris Khurshid, chief investment officer at Karobaar Capital, responded to the statement by saying: “It feels like the market is increasingly betting that both sides ultimately have more to lose from failure than compromise. That doesn’t mean a deal is close; it just means the market no longer sees breakdown as the most likely outcome.”
However, oil pared some of its losses after President Trump posted on social media that a draft deal leaked by Iranian media had “NOTHING to do with the terms that were agreed to,” adding that Tehran contained “very dishonourable people to deal with,” as reported by Ship & Bunker.
Gulf Oil Flows Recovering Faster Than Expected
On a more constructive note, U.S. Energy Secretary Chris Wright told delegates at a Bloomberg Energy event in Houston that the U.S. military is now helping move approximately 7 million barrels per day out of the Persian Gulf. That figure represents roughly half the volume that had been stranded due to Iran’s blockage of the Strait of Hormuz, meaning current exports are running at about one-third of normal levels — a significantly higher figure than many analysts had anticipated, according to Ship & Bunker.
Adding to the calmer consumer tone, a University of Michigan survey indicated that U.S. consumer sentiment was less pessimistic than economists had forecast, partly reflecting relief over lower gasoline prices in June.
Does This Matter to You?
With Brent prices fluctuating sharply on social media posts and diplomatic signals, anyone tracking fuel costs, voyage economics, or procurement windows faces a particularly unpredictable environment. The near-17 percent drop in Brent open interest signals that hedging and forward planning have become significantly more difficult. The partial restoration of Persian Gulf oil flows adds a layer of complexity to supply assumptions, particularly for routes and ports dependent on Gulf crude exports.
Ship & Bunker’s reporting on bunker price levels across key ports — including Fujairah VLSFO at $1,229 per metric ton — underscores how elevated costs remain even as crude prices pull back.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
