Oil
Oil futures fell on Friday, posting their steepest weekly drop since 2022 ahead of US-Iran talks aimed at securing a lasting ceasefire.
Brent crude futures settled at $95.20, while US West Texas Intermediate crude (WTI) finished at $96.57. For the week, Brent fell 12.7%, while WTI fell by 13.4%. Crude futures hovered near $100 a barrel as attacks continued and the flow of oil through the Strait of Hormuz remained heavily restricted.
Traffic through the strait remained at less than 10% of normal volumes, as Tehran warned ships to keep to its territorial waters. Most ships that managed to pass through the strait over the past day were linked to Iran.
Meanwhile, Iran has proposed charging ships transit fees through the Strait of Hormuz as part of a potential peace deal, but Western leaders and the UN’s shipping agency have rejected the idea.
Gas
Asia spot liquefied natural gas fell after the US and Iran agreed to a two-week ceasefire, with prices hitting their lowest levels since the war began.
However, market uncertainty and supply risks persist, with vessels yet to exit the Strait of Hormuz.
The average LNG price for May delivery into northeast Asia was $17.00 per million British thermal units, down from $19.00 per mmBtu the week before.
Despite the ceasefire easing prices in the short term, structural supply risks remain. Ship traffic through the Strait of Hormuz has stood below 10% of normal volumes despite the ceasefire, with hundreds of tankers, including LNG vessels, stuck inside the Gulf. In Europe, the Dutch TTF gas price settled at $15.09 per mmBtu, posting a weekly loss of 10.5%.
However, buying interest from Turkey and Argentina has provided some demand support.
