Oil prices fell Friday as recovering crude flows through the Strait of Hormuz eased the war premium built up during this week's U.S.-Iran clashes. Commonwealth Bank of Australia estimates traffic through the waterway has recovered to 30%-35% of pre-war levels. Investors also weighed President Trump's push to add tariffs on Iran to a bipartisan sanctions bill targeting Tehran and Russia.
Oil prices fell Friday as recovering crude flows through the Strait of Hormuz eased the war premium built up during this week's clashes between the U.S. and Iran. West Texas Intermediate futures for September delivery dropped 1.6% to $82.27 a barrel. Brent crude, the international benchmark, fell 1.4% to $87.78 a barrel.
Hormuz Traffic Nears Recovery
Commonwealth Bank of Australia said stronger oil flows through the Strait of Hormuz had eased market concerns after U.S.-Iran strikes earlier this week briefly pushed Brent above $93 a barrel. The bank estimates traffic through the vital waterway has recovered to roughly 30%-35% of pre-war levels, adding that a rebound to around 50%-60% of normal flows could be enough to reassert oversupply conditions in the global oil market.
Trump Pushes Tariffs on Iran
Investors also weighed President Donald Trump's call to add tariffs on Iran to a bipartisan sanctions bill targeting Tehran and Russia. Sanctions against Iran and Russia have wide support in Congress, but Trump's use of tariffs as a broad tool of economic coercion is polarizing. According to CNBC: "I'd like to see tariffs on Iran. It would make it much stronger," Trump said of the bill, which would impose sanctions on Russia and those supporting its war against Ukraine.
Limited U.S.-Iran Trade at Stake
The U.S. imported just $1.4 million in goods from Iran in 2025, according to the Office of the U.S. Trade Representative. Works of art, collectors' pieces, and antiques made up 55% of that value, according to Trading Economics. The legislation would also let Trump impose targeted tariffs on the top five countries that buy Russian energy and help it evade sanctions.
Source: CNBC
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