NEW YORK / RankWire.AI / – Crude oil prices jumped by more than 4% on Friday as Brent crude closed above $88 per barrel. Brent futures increased by $3.87, or 4.59%, to settle at $88.10. U.S. West Texas Intermediate also gained $3.54, or 4.48%, ending at $82.49. Both benchmarks achieved their highest closing levels since mid-June. Brent saw approximately a 16% rise for the week and marked its third consecutive weekly increase. WTI experienced a similar weekly advance, extending its winning streak to two weeks.
Market activity reflected a significant drop in commercial vessel traffic through the Strait of Hormuz, a critical route for global oil and gas exports. Only three cargo ships traversed the waterway on Thursday, the lowest daily count since May. On Wednesday, eleven vessels made the crossing. Prior to recent tensions, the daily average was nearly 125. No very large crude carriers or liquefied natural gas tankers crossed for a second straight day, restricting the movement of key energy shipments from Gulf ports.
The oil market also responded to disruptions at regional shipping hubs. Iraq temporarily halted crude exports at the Basra terminal following a drone attack on a tanker. Operations later resumed. Additionally, two large crude carriers, each capable of holding about 2 million barrels, were seen outside Hormuz after departing the Gulf earlier this week. The decline in shipping activity coincided with the largest single-day increases in crude futures during the week. International energy prices broadly gained during Friday’s trading session.
Hormuz slowdown restricts 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 pre-conflict level of 24 million barrels per day. Most of the rise was driven by crude oil and condensate. Gulf production also grew by 3.5 million barrels daily but stayed 11.4 million barrels below previous levels, indicating that both production and exports had not yet returned to normal volumes.
The International Energy Agency also documented a 21 million barrel increase in global oil inventories during June, marking the first monthly rise in four months. Sea-held inventories grew by 117 million barrels, while onshore stocks decreased by about 96 million, with government stock releases accounting for 44 million of that decline. 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 gains boost global crude benchmarks
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices briefly fell below $70 on July 1 before recovering during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels a day in Q2, with average production shut-ins at 8.3 million barrels daily in June, after peaking at 11.2 million barrels in May.
Friday’s settlement left Brent $12.09 above the $76.01 closing on July 10. WTI closed $11.08 higher than its $71.41 one-week-earlier close. These movements represented weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. sector to close higher on Friday. Both crude contracts ended near their session peaks, wrapping up a week marked by substantial price increases, reduced tanker activity, and ongoing restrictions on Gulf energy exports.