Oil Set For Steep Weekly Loss As Hormuz Traffic Resumes

(RTTNews) - Oil prices were modestly lower on Friday and headed for a sharp weekly decline after tanker traffic resumed through the Strait of Hormuz.

Brent crude futures for August delivery were down half a percent at $79.46 a barrel, recouping some initial losses as the abrupt cancellation of U.S.-Iran peace talks added to uncertainty over efforts to secure a lasting truce in the Middle East conflict.

WTI crude futures for July delivery were up 0.6 percent at $77.07 a barrel.

Brent contracts were down nearly 9 percent for the week as the U.S.-Iran preliminary peace deal took effect and shipping started returning to the Strait of Hormuz after months of disruption.

The U.S. Central Command announced it had lifted restrictions on traffic to and from Iranian ports and coastal waters. Iran said it has suspended transit charges for commercial vessels for 60 days.

Iran's Supreme Leader Ayatollah Mojtaba Khamenei said he held a "different view" on the memorandum of understanding but ultimately approved it after receiving assurances from President Masoud Pezeshkian and other officials that the country's interests would be protected.

Meanwhile, the Swiss Foreign Ministry said that U.S. talks with Iranian negotiators on a pact to end the Middle East conflict have been postponed.

U.S. Vice President JD Vance has delayed his planned trip to Switzerland and Tehran also held back from the planned talks after at least 16 people were killed in Israeli airstrikes across southern Lebanon overnight.

Hezbollah reported intense fighting in the area, threatening the nascent agreement between Washington and Tehran to end their war.

Vance issued a stark warning for the Israeli government to get on board with President Trump's interim peace agreement with Iran, adding Israeli leaders need to "wake up and smell the reality" that they are isolated internationally.