Oil posts weekly loss above 5% despite Hormuz tensions

Crude prices ended the week more than 5% lower even as the war with Iran and shipping disruptions in the Strait of Hormuz kept geopolitical risks in focus. Brent crude settled at $89.31 a barrel on Friday, down 0.43% on the day, while West Texas Intermediate closed at $83.40, a 0.16% decline. Brent lost more than 5% over the week and WTI fell more than 4%. Investors are watching for signs that traffic through the Strait of Hormuz, which before the war carried roughly 20% of global oil supply, is returning to normal. Ship movement through the corridor has been uneven, but reports of efforts to reopen the waterway have reinforced expectations of an improving supply outlook. Initial figures showed seven cargo ships transiting the strait on Thursday and 17 the previous day, compared with a ten-day average of 15. Additional pressure on prices came from U.S. Federal Reserve Chair Kevin Warsh, who signaled possible interest rate increases to combat inflation, stoking demand concerns. According to Goldman Sachs estimates, Gulf exports are running at 15 million to 16 million barrels a day, below pre-war levels but well above the lows recorded in March.