WTI remains below $68.50 amid easing Middle East tensions

West Texas Intermediate (WTI) oil price inches lower after registering modest gains in the previous day, trading around $68.40 during the Asian hours on Friday. The global energy market is experiencing a notable cooling period as geopolitical tensions in the Middle East begin to ease.

Crude oil prices decline following a series of diplomatic breakthroughs between the United States (US) and Iran. Recent negotiations in Doha, facilitated by mediators from Qatar and Pakistan, have significantly lowered the geopolitical risk premium that previously kept energy prices elevated.

Oil prices ease as the steady recovery of commercial shipping through the Strait of Hormuz. As one of the world's most critical maritime chokepoints, any instability in this waterway directly impacts global oil distribution. The stabilization of the region has allowed commercial tankers to resume transit with confidence, signaling to global markets that regional oil supplies are gradually normalizing after a prolonged period of uncertainty.

Major regional producers are rapidly restoring their export capacities. Saudi Arabia’s crude exports have rebounded to approximately 90% of their pre-war levels as more tankers successfully navigate the waterway. Simultaneously, the United Arab Emirates has managed to bring its oil exports entirely back to pre-war volumes. The UAE achieved this by discreetly routing tankers through the Strait while also heavily relying on its strategic pipeline that bypasses the chokepoint entirely, ensuring a steady flow of crude to international buyers and further stabilizing global energy markets.