Oil prices steady amid Hormuz shipping slowdown

July 10, 2026 (MLN): Oil prices were largely unchanged on Friday as investors closely monitored developments in the Middle East, weighing geopolitical risks against ongoing diplomatic efforts surrounding the U.S.-Iran conflict.

Currently, Brent crude futures is down, 0.44%, at $75.86 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.52, or 0.72%, to $71.56 per barrel by [02:30 pm] PST.

The market remained cautious after crude surged earlier this week following U.S. strikes on Iran in response to attacks on commercial tankers in the Strait of Hormuz, according to CNBC.

Hopes that diplomatic engagement could help ease tensions have since prevented another sharp rally in oil prices.

The sharp decline in tanker traffic points to tighter Iranian oversight of vessel movements through the Strait of Hormuz, raising concerns over the security of one of the world's most critical oil transit routes.

The disruption could have longer-term implications for global crude supply flows if shipping activity remains constrained.

Adding to supply concerns, the International Energy Agency (IEA) warned that global oil demand is on track to post its first annual decline since the pandemic-driven slump of 2020.

The agency projects demand will fall by around one million barrels per day in 2026, largely reflecting the impact of the conflict on production and exports across the Middle East.

The IEA said the downturn has been driven primarily by disruptions linked to the Strait of Hormuz, where restricted shipping has curtailed crude and fuel exports from the Persian Gulf.

While some recovery has begun, the agency cautioned that the outlook remains highly dependent on a sustained de-escalation of hostilities and the gradual restoration of tanker traffic through the waterway.

According to the IEA, the global oil market could return to a supply surplus later this year if shipping through the Strait of Hormuz normalizes, enabling oil producers to restore output and refiners to resume fuel exports.

However, it warned that renewed military escalation in the Gulf could delay the recovery, prolong supply disruptions and keep uncertainty elevated across energy markets.

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