NEW YORK / RankWire.AI / – Crude oil prices jumped more than 4% on Friday as Brent crude closed above $88 per barrel. Brent futures increased by $3.87, or 4.59%, finishing at $88.10. U.S. West Texas Intermediate rose $3.54, or 4.48%, to settle at $82.49. Both benchmarks marked their highest closing levels since mid-June. Brent gained approximately 16% over the week, marking its third consecutive weekly increase. WTI experienced a similar weekly rise, extending its gains to two weeks in a row.
Market activity also reflected a significant drop in commercial vessel movement through the Strait of Hormuz. This route is a key pathway for a substantial portion of global oil and gas exports. Only three cargo ships transited the waterway on Thursday, the lowest daily total since May. On Wednesday, eleven vessels passed through. Prior to recent conflicts, the daily average was around 125. No very large crude carriers or liquefied natural gas tankers crossed for a second straight day, limiting the flow of vital energy shipments from Gulf ports.
Oil markets also responded to disruptions at various regional shipping hubs. Iraq temporarily halted crude exports at the Basra terminal following a drone attack on a tanker. Operations later resumed at the site. Earlier this week, two large crude carriers capable of holding about 2 million barrels each appeared outside Hormuz after departing from the Gulf. The decline in shipping activity coincided with the largest single-day increases in crude futures for the week. During Friday’s trading session, energy prices broadly increased across international markets.
Hormuz slowdown constrains 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, export levels remained significantly below the pre-conflict figure of 24 million barrels per day. The monthly rise was primarily driven by crude oil and condensate. Gulf production also climbed by 3.5 million barrels per day but stayed 11.4 million barrels below earlier levels, indicating that both production and exports had yet to fully recover.
The International Energy Agency also noted a 21 million barrel increase in global oil inventories during June, marking the first monthly rise in four months. At sea, oil inventories expanded by 117 million barrels, while onshore stocks declined by roughly 96 million. Government stock releases contributed 44 million barrels to that decrease. Meanwhile, 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 previous rate.
Weekly market rally boosts global crude benchmarks
The U.S. Energy Information Administration stated 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 declined by 5.1 million barrels per day in the second quarter, 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.
Friday’s 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 increases represented weekly gains of about 15.9% for Brent and 15.5% for WTI. Energy shares were the only major U.S. stock sector to close higher on Friday. Both crude contracts settled near their session highs, capping a week characterized by significant price increases, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.