NEW YORK / RankWire.AI / – Oil prices climbed over 4% on Friday as Brent crude closed above $88 per barrel. Brent futures increased by $3.87, or 4.59%, ending at $88.10. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, finishing at $82.49. Both benchmarks reached their highest closing points since mid-June. Brent gained approximately 16% over the week, marking a third consecutive weekly increase, while WTI posted a similar weekly rise, extending its winning streak to two weeks.
Market activity reflected a sharp decline in commercial vessel traffic through the Strait of Hormuz, a key route for global oil and gas exports. On Thursday, only three commodity vessels transited the waterway, the lowest daily total since May. The previous day saw eleven vessels crossing. Prior to recent conflicts, the daily average was nearly 125. No very large crude carriers or liquefied natural gas tankers crossed for the second straight day, restricting major energy cargo movements from Gulf ports.
The oil markets also responded to disruptions at several regional shipping hubs. Iraq briefly halted crude loadings at the Basra terminal after a drone strike on a tanker, though operations later resumed. Two large crude carriers, each capable of carrying about 2 million barrels, were spotted outside Hormuz after departing the Gulf earlier this week. The decline in shipping activity coincided with some of the largest single-day increases in crude futures this week. Overall, energy prices gained across international markets on Friday.
Hormuz slowdown restricts regional oil flow
The International Energy Agency reported that Gulf oil exports increased by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this rise, export levels remained significantly below the pre-conflict figure of 24 million barrels. The increase mainly stemmed from crude oil and condensate exports. Gulf production also grew by 3.5 million barrels per day but remained 11.4 million barrels below prior levels, indicating that both production and exports had yet to fully recover.
In June, the International Energy Agency also documented a 21 million barrel increase in global oil inventories, marking the first monthly rise in four months. Sea-held oil inventories grew by 117 million barrels, whereas onshore stocks declined by approximately 96 million, with government stock releases accounting for 44 million of that decrease. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, while crude shipments recovered to nearly 75% of their earlier rate.
Weekly surge boosts global crude benchmarks
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 rebounded during the first half of July. The agency estimated that global oil inventories decreased by 5.1 million barrels per day in Q2, with average production shut-ins reaching 8.3 million barrels daily in June. These losses peaked at 11.2 million barrels per day in May.
The Friday close placed Brent $12.09 above its July 10 settlement of $76.01. WTI finished $11.08 higher than its previous week’s close of $71.41. These movements represented weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Among major U.S. stock market sectors, energy shares were the only ones to close higher on Friday. Both crude benchmarks ended near their daily session highs, capping a week characterized by significant price increases, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.