Brent crude futures settled at $76.01 a barrel on Friday, down 29 cents or 0.38 percent, as market participants grew increasingly optimistic that shipping operations in the Strait of Hormuz would normalize following the latest round of US-Iran hostilities.
The modest decline reflects a shift in trader sentiment, with the risk premium associated with the chokepoint beginning to compress.
While the geopolitical situation remains volatile, the immediate fear of a prolonged supply disruption has eased, allowing prices to stabilize near the $76 level.
While the geopolitical situation remains volatile, the immediate fear of a prolonged supply disruption has eased, allowing prices to stabilize near the $76 level.
This follows a period of heightened volatility where benchmarks had surged on fears of extended closures.
The development comes as the United Nations has called for a global pushback against Iran's unilateral control of the Strait, signaling international pressure to restore free navigation.
This diplomatic stance, combined with the market's assessment that a total shutdown is unlikely to persist, has provided a floor for oil prices while capping further upside.