Resilient export logistics and de-escalation sentiment depressed oil benchmarks despite positive weekly print

Oil prices extended losses on Friday as growing de-escalation confidence unwound geopolitical risk premiums, though benchmarks secured their first weekly gains in three weeks.

The international Brent contract fell $1.94 (2.04%) to settle at $93.09 a barrel, while U.S. WTI crude dropped $2.50 (2.69%) to close at $90.54. For the aggregate week, Brent advanced 1.18% and WTI gained 3.64%, reflecting severe mid-week volatility before the late-session paper liquidation.

Export infrastructure demonstrated localized resilience as Oman's Mina al Fahal terminal maintained uninterrupted loadings of its 800,000 to 900,000 barrel-per-day export capacity following a tactical explosion near mooring berths. This logistical continuity preserved regional flows even as broader diplomatic frameworks faced renewed friction.

In the Levant, Hezbollah leadership formally rejected the U.S.-brokered Israel-Lebanon ceasefire framework, complicating a critical Iranian prerequisite for a comprehensive Washington peace accord and leaving the Strait of Hormuz fundamentally restricted.

Downstream cushions and shifting Asian trade flows continue to cap prompt price ceilings despite severe localized blockades. Driven by the active U.S. naval blockade, Iranian oil exports collapsed to their lowest level in six years.

However, sluggish Chinese processing demand has simultaneously depressed sanctioned spot differentials, while optimized inventory management and rerouted supply chains prevent immediate physical deficits on the international market.

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