Oil prices fell below the $100 mark on Friday, as tensions around the Strait of Hormuz continue to loom. The crucial shipping lane remains largely closed, even in light of a ceasefire agreement between the U.S. and Iran. U.S. West Texas Intermediate crude futures for May delivery experienced a decline of 1.5%, trading at $96.37 per barrel after surpassing $100 earlier in the session. International benchmark Brent crude futures for June delivery decreased by 1.3%, settling at $94.69 per barrel. President Donald Trump has cautioned Iran to “stop now” if it was imposing charges on tankers transiting the strait, a development that threatens to jeopardize a two-week ceasefire agreement reliant on the reopening of the waterway. On Friday, he intensified his assertive narrative. “The Iranians don’t seem to realize they have no cards, other than a short term extortion of the World by using International Waterways,” he stated in a Truth Social post. “The only reason they are alive today is to negotiate!” Shipping flows through the chokepoint, which managed approximately 20% of global oil supply prior to the war, continued to face significant restrictions, leaving markets in a state of uncertainty.

Reports on Friday indicated that the majority of ships transiting the strait in the past day were associated with Iran. “Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz,” Trump said in a Truth Social post. Kevin Hassett, Trump’s top economic advisor, stated on Thursday that successfully getting even one oil tanker across the strait would deliver a “huge chunk of what’s missing.” Adrian Beciri stated that the Strait of Hormuz remains effectively closed and the behavioural attitudes of shipowners and operators are “exactly the same today” as they had been at the peak of the conflict. “Quite frankly speaking, the situation is extremely chaotic.”

The Straits of Hormuz currently lack a known or established transit method. “There is even not a clear way to contact the Iranians on how to do it, which seems to be the only way at the moment,” Beciri told on Friday. “The few vessels that have are following different routes than they have historically.” He added “They are following a route closer to the coastline of Iran and the sums of money I’m hearing from shipowners off the record are quite frankly ridiculous.” Additionally, attacks on Saudi Arabia’s energy infrastructure have impacted its oil production capacity. The strikes have reduced oil output capacity by approximately 600,000 barrels per day and decreased flows through the East-West Pipeline by about 700,000 bpd, as reported, referencing a source from the Ministry of Energy. A report indicates that Iranian strikes have targeted a pumping station along the East-West pipeline. The pipeline carries crude oil from processing facilities located near the Persian Gulf to the Red Sea export terminal at Yanbu. Riyadh has relied significantly on the pipeline as its main export route amid the conflict, as Iranian attacks have rendered shipments through the Strait of Hormuz increasingly impractical.

Meanwhile, distinct assaults on Saudi Arabia’s Manifa and Khurais oil fields have reduced the kingdom’s output by approximately 600,000 barrels per day, according to the Saudi Press Agency. Recent strikes have also targeted several refineries, further compounding supply disruptions. On Tuesday, the U.S. secured a two-week ceasefire agreement with Iran, contingent upon Tehran permitting vessels to transit the strait. The chief executive of the United Arab Emirates’ state oil firm stated on Thursday that the waterway remains largely shut to shipping. As Gulf imports fall below 2 million barrels per day and voyage times extend to several weeks, analysts indicated that buyers might have to depend on stockpiles and alternative supplies for at least another month, despite the pressure of rising fuel prices on demand.