Global crude oil prices declined in late trading as Brent and WTI weakened, reflecting market uncertainty over evolving shipping conditions in the Strait of Hormuz, where access is increasingly being managed through selective arrangements rather than free passage.
As at the time of writing 09:32 pm (WAT), Brent crude was trading at $105.9 per barrel, down 1.78%, while West Texas Intermediate (WTI) stands at $101.3 per barrel, falling 0.87%. Murban crude is priced at $105.2 per barrel, down 0.80%, while natural gas is trading at $2.859, up 0.56%.
The decline in oil prices comes as reports indicate that Iran is increasingly applying case-by-case control over tanker movement through the Strait of Hormuz, a key global oil shipping route. Instead of full unrestricted access, oil and LNG cargoes are now reportedly moving under bilateral arrangements involving selected countries.
Iraq, one of OPEC’s most dependent oil exporters, is said to have secured passage for multiple crude cargoes through negotiations, while also seeking further arrangements to sustain exports of Basrah crude. Similar reports suggest Pakistan has also engaged in discussions to facilitate LNG shipments amid ongoing energy pressure.
Market analysts say the development introduces a new layer of uncertainty into global oil flows, as access to one of the world’s most critical chokepoints becomes increasingly conditional. This shift has raised concerns over transparency, shipping insurance costs, and delivery timelines for crude cargoes leaving the Gulf region.
Despite limited movement of vessels under negotiated agreements, overall sentiment in the oil market remains fragile, with traders reacting to the risk of unpredictable supply disruptions from the region.