Stable shipping in Strait of Hormuz boosts supply, pressures oil prices

Oil markets expert Mohammed Al-Shatti said that stable shipping activity in the Strait of Hormuz increases supply and puts downward pressure on global oil prices.

Speaking to Al Arabiya FM, Al-Shatti explained that the market reacts to any signals. When reports emerged of a possible US strike against Iran, oil prices rose, but when the strike was called off, prices responded by dropping.

He added that this does not necessarily mean risks have disappeared, but rather reflects the market's response to developments. Future price movements will depend on activity in the Strait of Hormuz, and if stability continues, oil prices could fall below $80 per barrel.

Reports of Omani-Iranian negotiations paving the way for talks between Washington and Tehran, following US President Donald Trump's decision to halt a planned strike on Iran, also contributed to the decline in oil prices. However, the outcome will depend on the progress of these negotiations.

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