Oil Eases to US$76.24 but Remains on Track for Strong Weekly Gains as Markets Monitor Middle East Developments

Oil prices edged lower in early Asian trading on Friday but remained on track for weekly gains of around 6% for Brent crude and 5% for WTI, marking their strongest weekly performance in more than a month.

Recent price movements coincided with reports of renewed diplomatic efforts, with Qatar and Pakistan seeking to facilitate discussions between Washington and Tehran following an exchange of military strikes earlier in the week.

The conflict intensified during the week after the United States conducted strikes on Iranian targets in response to attacks on commercial shipping in the Strait of Hormuz. Iran subsequently launched missiles and drones targeting U.S. assets in Bahrain, Kuwait, Qatar, and Jordan.

According to ANZ Bank Senior Commodity Strategist Daniel Hynes, one factor that helped limit additional gains in oil prices was the absence of direct strikes on Iranian energy infrastructure. Market sentiment also reflected comments from U.S. President Donald Trump indicating that he did not expect a broader military conflict.

Demand-side developments also remained in focus. China's Producer Price Index (PPI) rose 4.1% year-on-year in June, the fastest pace in four years, while the Consumer Price Index (CPI) increased 1.0%, below market expectations. At the same time, vehicle sales declined for a ninth consecutive month, suggesting continued softness in fuel demand from the world's largest crude importer.

Market focus: Market participants are likely to continue monitoring diplomatic developments involving the United States and Iran, as well as shipping conditions in the Strait of Hormuz and economic data from major oil-consuming countries, as these factors could continue to influence oil market sentiment.

Sources: Trading Economics; CNBC; ANZ Bank (via Al Jazeera); National Bureau of Statistics of China (July 9–10, 2026)