NEW YORK / RankWire.AI / – Oil prices climbed more than 4% on Friday, with Brent crude closing above $88 per barrel. Brent futures increased by $3.87, or 4.59%, to finish at $88.10. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, ending at $82.49. Both benchmarks reached their highest closing levels since mid-June. Brent saw approximately a 16% rise for the week, marking a third consecutive weekly increase. WTI experienced a similar weekly boost, extending its winning streak to two weeks.
Market activity also reflected a significant decrease in commercial vessel movement through the Strait of Hormuz. This route is a critical conduit for a large portion of global oil and gas exports. On Thursday, only three commodity ships passed through, the lowest daily total since May. On Wednesday, eleven vessels navigated the waterway. Prior to recent conflicts, the daily average was nearly 125 crossings. For the second day in a row, no very large crude carriers or liquefied natural gas tankers transited the strait, constraining key energy shipments from Gulf ports.
Oil markets also responded to disruptions at regional shipping hubs. Iraq temporarily halted crude loading at the Basra terminal following a drone attack on a tanker, though operations later resumed. Earlier this week, two large crude carriers, each able to hold about 2 million barrels, were seen outside Hormuz after departing the Gulf. The decline in shipping activity coincided with the largest single-day increases in crude futures this week. During Friday’s session, energy prices broadly advanced across international markets.
Hormuz slowdown tightens regional oil flows
The International Energy Agency reported that Gulf oil exports rose by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this increase, exports remained significantly below the 24 million barrels before the conflict. Most of the monthly growth came from crude oil and condensate. Gulf production also increased by 3.5 million barrels per day but still fell 11.4 million barrels short of previous levels, indicating that both production and exports had yet to fully recover.
The International Energy Agency further noted a 21 million barrel rise in global oil inventories during June, marking the first monthly increase in four months. Sea-held inventories grew by 117 million barrels, while onshore stocks declined by approximately 96 million, with government releases accounting for 44 million of that reduction. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, though crude shipments recovered to nearly 75% of their former rate.
Weekly rally supports global crude benchmarks
The U.S. Energy Information Administration reported 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 shrank by 5.1 million barrels a day in the second quarter. It also noted that average production shut-ins reached 8.3 million barrels daily in June, peaking at 11.2 million barrels per day in May.
Friday’s closing prices left Brent $12.09 above its July 10 settlement of $76.01. WTI closed $11.08 higher than its previous week’s close of $71.41. These movements represented weekly increases of approximately 15.9% for Brent and 15.5% for WTI. Energy shares were the only major U.S. stock sector to finish Friday higher. Both crude contracts settled near their session highs, capping a week characterized by strong price gains, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.