Daijiworld Media Network – London
London, Jun 26: Global oil prices extended their losses on Friday, with benchmark crude falling more than two per cent as investors looked beyond renewed tensions in the Middle East and focused on the global supply outlook.
Brent crude futures for August delivery declined 2.03 per cent to USD 73.73 a barrel, while US West Texas Intermediate (WTI) crude futures fell 2.11 per cent to USD 70.40 a barrel.
The decline came despite reports of fresh security concerns in the Strait of Hormuz, one of the world's busiest oil shipping routes.
According to reports, a US official alleged that Iran was behind an attack on a Singapore-flagged cargo vessel near the coast of Oman. However, the United Kingdom Maritime Trade Operations (UKMTO) said the ship reported no casualties or environmental damage.
Meanwhile, International Maritime Organization (IMO) Secretary-General Arsenio Dominguez said the organisation had temporarily paused the implementation of its vessel evacuation plan to reassess safety guarantees for ships operating in the region.
Geopolitical tensions also remained elevated as Iran and the United States continued to differ over the use of Iranian assets released under a memorandum of understanding between the two countries.
Iran's Parliament Speaker rejected claims by the Trump administration that the unfrozen funds would be used to purchase American agricultural products, while US officials maintained that any released assets would remain subject to Washington's approval.
Market analysts said investors remain cautious as uncertainty persists over the broader agreement between the two countries.
Analysts also noted that any disruption to shipping through the Strait of Hormuz could have significant implications for the global economy, although markets are currently placing greater emphasis on supply expectations.
Adding to concerns over oil supply dynamics, reports suggested that Iraq has sought a higher production quota from the Organization of the Petroleum Exporting Countries (OPEC) and has indicated it could consider leaving the producers' group if its demands are not met. The development follows the United Arab Emirates' exit from OPEC earlier this year, raising fresh questions over the cartel's future production strategy.