NEW YORK / RankWire.AI / – Oil prices settled about 2% lower on Thursday as inflation concerns outweighed continuing supply disruptions in the Middle East. Brent crude futures fell $1.72, or 2.2%, to $76.30 a barrel. U.S. West Texas Intermediate crude dropped $1.44, or 2%, to $72.08. Both benchmarks closed below Wednesday’s peaks. Brent had reached its highest settlement since June 19, while WTI had posted its strongest close since June 22. Despite Thursday’s decline, both contracts remained higher for the week.
Oil prices edged higher in early Asian trading on Friday after the sharp settlement drop. At 0319 GMT, Brent added 19 cents to $76.49 a barrel. WTI also gained 19 cents, reaching $72.27. Brent stood about 6% higher for the week, while WTI was up roughly 5%. The weekly advance followed renewed disruptions to tanker traffic through the Strait of Hormuz. The waterway carries crude and fuel from major Persian Gulf producers to customers across global markets.
Tanker movement through the strait slowed to a near standstill on Thursday as vessel owners reviewed risks from new attacks. Before the conflict, about one-fifth of daily global oil and gas supplies passed through the route. Goldman Sachs estimated Persian Gulf oil flows had fallen to the low 70% range of normal levels after recent tanker attacks. Flows had recovered above 80% during the first 10 days of reopening. The renewed disruption kept physical supply concerns in focus as benchmark crude prices declined.
Supply routes remain restricted
Iranian armed forces attacked U.S. military infrastructure in Gulf states on Thursday after American strikes on Iran’s coastal and eastern provinces. The exchanges followed a ceasefire agreement that had lasted three weeks. Iran’s Revolutionary Guards Navy said U.S. actions and intervention in shipping routes disrupted the strait’s gradual reopening. Explosions also occurred in southern Iran, including Bushehr, home to a nuclear power plant. The fighting resumed as Iran buried Ayatollah Ali Khamenei in Mashhad after a week of funeral processions.
Qatar condemned attacks on commercial shipping and called for a return to diplomacy. The foreign ministers of Turkey and Oman urged an end to further escalation during calls with Iranian Foreign Minister Abbas Araqchi. Iranian forces also hit a Qatari liquefied natural gas vessel as it left the waterway near Oman. Ship-tracking data showed tanker traffic at a near standstill on Thursday. Those disruptions delayed a full reopening of the Strait of Hormuz and reduced vessel movements through the corridor.
Economic data adds market pressure
Economic data also shaped Thursday’s oil market. U.S. claims for unemployment benefits fell during the latest reporting week. Minutes from the Federal Reserve’s June 16-17 meeting showed increased concern about inflation. Policymakers generally expected labor conditions to remain stable in the near term, with unemployment close to current levels. In China, producer price inflation reached a four-year high in June. Weak domestic demand limited the ability of manufacturers to pass higher costs to customers.
Fuel markets faced additional supply pressure after Russia announced a ban on diesel exports. U.S. diesel futures recorded their largest daily percentage gain in four years on Wednesday. Russia announced the restriction as attacks affected its energy transportation network. U.S. energy data ranked Russia as the world’s third-largest crude producer in 2025, behind the United States and Saudi Arabia. By Thursday’s close, crude benchmarks had fallen while Hormuz shipping constraints and Russia’s diesel restrictions remained in place.