Energy prices post huge weekly drops amid easing tensions in Middle East

Gokhan Ergocun

As tensions in the Middle East region eased following the announcement that the Strait of Hormuz had been opened to commercial shipping, energy futures closed the week with strong weekly declines.

In a post on his social media account regarding the matter, Trump said the strait is completely open and the US naval blockade against Iran in the strait would remain in effect until the agreement is 100% finalized.

Oil prices saw sharp declines on Friday with Brent futures dropped by around 3.5% on weekly basis to $91.8 per barrel and West Texas Intermediate (WTI) was down by 11.4% to $85.5.

Natural gas prices in Europe plunged by 9.1% week-on-week on Friday to €39.66 ($46.6) per megawatt-hour.

Heating oil prices went down by 8.6% to $3.4 per gallon.