Brent crude drops to $89.3, extending weekly losses past 5%

Brent crude oil fell to $89.3 a barrel on Friday, extending weekly losses to over 5%, as traders increasingly viewed the Iran situation as an economic/sanctions confrontation rather than an imminent threat to physical supply, while improving flows through Hormuz and the proposed Iran—Oman corridor further reduced the perceived supply risk.

Goldman Sachs estimated that Persian Gulf oil exports have climbed to around 15—16 million barrels per day, still significantly below pre-conflict volumes of 22—24 million barrels but well above the March low of about 5—6 million barrels.

Meanwhile, Iran and Oman agreed on a revenue-sharing framework for the strait, although Tehran emphasized that this does not imply an immediate reopening.

Still, the Trump administration reportedly told mediators it does not intend to revive the terms of a preliminary June agreement with Iran that subsequently collapsed.