Oil markets closed the week on a firm note as traders weighed signs that Iran may be softening its stance in its standoff with Washington, according to Ship & Bunker. The report notes that markets are now looking to Monday, when U.S. President Donald Trump is expected to move forward with plans to further isolate Iran’s economy.
According to Ship & Bunker, Iranian President Masoud Pezeshkian called for an end to the conflict between Tehran and Washington on Friday, acknowledging the economic toll of the standoff and appearing to criticize hardliners within his own government as “sitting outside the circle.” This marked what Ship & Bunker described as Iran’s first notable shift in the ongoing dispute.
Brent crude settled up 61 cents at $94.39 per barrel, while West Texas Intermediate rose 23 cents to close at $87.06 per barrel, Ship & Bunker reported. For the week, Brent gained 6.3 percent and WTI rose 5.6 percent.
Analysts Weigh In on Iran’s Position
John Kilduff, founding partner at Again Capital, told Ship & Bunker that “sanctions have been the only thing to bring Iran to heel.” Meanwhile, Crispus Nyaga, research analyst at Empire FX, noted that “the immediate impact on supply may be limited as Iranian exports are already heavily constrained by the U.S. naval blockade,” as reported by Ship & Bunker.
Phil Flynn, senior market analyst at Price Futures Group Inc., pointed out in a note cited by Ship & Bunker that the Strait of Hormuz is “still a problem, but it is no longer the only story,” citing contributions from pipelines, shuttle tankers, U.S. shale output, a recovering Venezuela, and increased UAE supply.
However, Helima Croft, head of global commodity strategy at RBC Capital Markets, offered a more skeptical view, according to Ship & Bunker. She said the Strait of Hormuz “is not closed but we still estimate that we’re losing from this war about 8 million barrels per day.” Ship & Bunker also reported that the U.S. military has stated it has helped tankers move more than 660 million barrels of oil through Hormuz since early May.
Saudi Exports Reroute Around Red Sea Threats
Ship & Bunker also reported that tanker tracking data showed Saudi Arabia has increased crude exports from Egypt’s Mediterranean port of Sidi Kerir by roughly 33 percent over the past month, following Houthi threats against Saudi oil shipments in the southern Red Sea and Bab el-Mandeb strait. Western ship operators including South Korea’s Sinokor, Norway’s DHT Management, and Greece’s Dynacom have been assisting Saudi Aramco in transporting crude northward from the Red Sea, according to the report.
Does This Matter to You?
The developments highlighted by Ship & Bunker point to continued volatility risk tied to Iran-U.S. tensions and Red Sea security conditions, both of which can influence freight routing decisions and voyage risk assessments. The reported rerouting of Saudi crude exports through Sidi Kerir, supported by Western tanker operators, may be relevant to those tracking shifts in regional trade flows and vessel deployment patterns. The source material does not provide specific detail on bunker fuel demand impacts, so any direct effect on fuel procurement remains unclear based on available reporting.
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
