NEW YORK / RankWire.AI / – Oil markets experienced an increase of over 4% on Friday. Brent crude surpassed the $88 per barrel threshold, with both primary benchmarks reaching their highest closing levels in over a month. Brent futures rose by $3.87, or 4.59%, to end at $88.10 a barrel. Meanwhile, U.S. West Texas Intermediate climbed $3.54, or 4.48%, to close at $82.49. Both benchmarks gained approximately 16% over the course of the week. Brent achieved its third straight weekly increase, while WTI marked its second.
This surge coincided with another sharp decline in commercial shipping activity through the Strait of Hormuz. The waterway remains a key corridor for global oil and gas shipments. Just three cargo ships transited on Thursday, representing the lowest daily count since May. On Wednesday, eleven vessels passed through, compared to an average of 125 daily before the conflict intensified. No very large crude carriers or liquefied natural gas tankers crossed for the second consecutive day.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions again curtailed Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal following a drone strike on a tanker. The loading operations later resumed. Two large crude carriers, each with approximately 2 million barrels of oil, appeared outside Hormuz after departing the Gulf earlier in the week. These developments coincided with the biggest daily gains of the week for crude futures and a rise in energy prices across global markets.
Vessel traffic in Hormuz declines amid rising oil prices
The International Energy Agency reported that oil exports from the Gulf increased by 6.5 million barrels per day in June. Total shipments reached 16.1 million barrels daily, still below the pre-conflict level of 24 million barrels per day. The majority of the monthly rise was driven by crude and condensate exports. Gulf production grew by 3.5 million barrels daily but remained 11.4 million barrels below previous levels. The data indicated only a partial recovery before the recent decline in vessel traffic.
The IEA also noted that global observed oil inventories increased by 21 million barrels in June, marking their first monthly rise in four months. Marine oil stocks grew by 117 million barrels, while onshore reserves decreased by approximately 96 million barrels. Government releases contributed 44 million barrels to the onshore decline. 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 earlier volumes.
Weekly gains push both benchmarks higher
The U.S. Energy Information Administration indicated that Brent 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 daily in the second quarter. It also projected that production shutdowns averaged 8.3 million barrels per day in June, after reaching a peak of 11.2 million in May.
By the close on Friday, Brent was $12.09 above its July 10 close of $76.01. WTI ended $11.08 higher than its previous close of $71.41 from one week earlier. These increases represented weekly gains of roughly 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. market sector to finish higher on Friday. Both oil contracts closed near their session highs, concluding a week characterized by significant price increases and diminished tanker traffic through Hormuz.