Crude falls despite new vessel attack
Oil prices moved lower again on Friday as additional tankers left the Strait of Hormuz, reducing immediate concerns about supply disruptions even after a cargo ship was attacked in the Gulf of Oman.
Brent crude futures for August settled 4.34% lower at $71.99 a barrel. U.S. West Texas Intermediate futures for August fell 3.74%, closing at $69.23 a barrel.
It was the first time WTI futures finished below $70 since Feb. 27, the day before the Iran war began.
Markets weigh diplomacy against security risks
The decline came as traders assessed whether diplomatic efforts in the Middle East could lower the risk of renewed disruptions to energy transport and global supply chains.
Investors remained focused on the Strait of Hormuz, one of the world’s most important oil transit routes, where recent tanker movements have suggested some normalization despite continued military and political uncertainty.
Iran blamed for attack near Oman
A U.S. official told MS NOW that Iran was responsible for an attack on a cargo ship near the coast of Oman in the Strait of Hormuz.
The vessel was sailing under a Singapore flag, according to the Wall Street Journal. The United Kingdom Maritime Trade Operations said the ship reported no casualties and no environmental damage.
The incident showed that the ceasefire environment remains fragile, even as more vessels attempt to move through the region.
Trump says Iran violated ceasefire
President Donald Trump said Friday that Iran had breached the ceasefire through drone attacks in the Strait of Hormuz.
In a Truth Social post, Trump said “Damage was done” but added that the ship was able to continue its journey. He also said three other drones were shot down and described the incident as a “foolish violation” of the ceasefire agreement.
The comments added to uncertainty over whether the diplomatic framework can hold long enough to restore confidence among shipowners, insurers and energy buyers.
IMO pauses evacuation plan
Arsenio Dominguez, secretary-general of the International Maritime Organization, said the agency would “temporarily pause its implementation” of the evacuation plan.
The decision came after several vessels had already been successfully evacuated under the plan. Dominguez said the pause was intended to reconfirm that safety guarantees remain in place for ships on the evacuation list and for other vessels in the region.
The IMO is a United Nations agency, and its decision underlined how quickly maritime planning can change when security risks return.
U.S. and Iran clash over frozen assets
Diplomatic tensions also continued around a memorandum of understanding between Washington and Tehran.
The speaker of Iran’s parliament rejected claims from the Trump administration that unfrozen Iranian assets would be used to buy U.S. agricultural products.
U.S. officials maintained that any released funds would remain subject to American approval. One official said the money, if released, would be used to purchase “American agricultural products” to feed the Iranian people, echoing comments from Vice President JD Vance.
Analysts warn optimism may be premature
Scott Nations, president of Nations Indexes, said on CNBC’s “Squawk Box Asia” that many questions remain about the actual terms and durability of the agreement.
He said markets may be “too optimistic” because the underlying issues have not been resolved.
Nations also warned that Iran understands the leverage it holds over the world economy if it chooses to threaten or close the Strait of Hormuz.
OPEC faces another possible fracture
The oil market is also watching internal pressure within OPEC. The group could face another exit by a major producer after the United Arab Emirates left the cartel in May.
Iraq, OPEC’s second-largest producer, has reportedly requested a higher production quota. The country has also told the group it could leave if its demands are not met.
That potential dispute adds another layer of uncertainty for energy markets already balancing falling prices, fragile diplomacy, shipping risks and questions about future supply discipline.
