On Friday, oil prices continued to decline, with West Texas Intermediate futures for September delivery decreasing by 1.62% to $82.24, while Brent crude futures fell by 0.98% to $88.16 a barrel.
The Commonwealth Bank of Australia noted that the recovery of oil flows through the Strait of Hormuz has eased market worries that had escalated after U.S.-Iran strikes pushed Brent prices above $93 a barrel earlier in the week.
The bank estimates that traffic through this crucial waterway has returned to approximately 30%-35% of pre-war levels, and a further increase to 50%-60% could lead to oversupply in the global oil market. Additionally, investors are considering President Donald Trump's proposal to impose tariffs on Iran as part of a sanctions bill aimed at both Iran and Russia.
While the bill has bipartisan support, Trump's approach to tariffs as a tool for economic pressure remains divisive. In 2025, the U.S. imported only $1.4 million in goods from Iran, primarily consisting of art and antiques. Trump's comments suggest a desire to strengthen the sanctions framework, which could have broader implications for energy markets and geopolitical relations