Global oil prices fell by more than 1% on Friday as improved crude shipments through key maritime routes eased supply concerns, even as the conflict between the United States and Iran continued to fuel geopolitical uncertainty.

Brent crude futures declined by $1.03, or 1.2%, to $88 per barrel, while US West Texas Intermediate (WTI) crude dropped $1.50, or 1.8%, to $82.09 per barrel. Despite the day’s losses, both benchmarks remained on track to record monthly gains of around 20%, reflecting the impact of Middle East tensions on energy markets throughout July.

Market analysts said the decline was driven by signs of increased oil flows through the Strait of Hormuz, a critical global shipping route that handles roughly one-fifth of the world’s crude oil and liquefied natural gas supplies. The improved movement of tankers helped offset fears of prolonged supply disruptions caused by the US-Iran conflict.

Daniel Hynes, Senior Commodity Strategist at ANZ, said rising crude flows through the Strait of Hormuz had eased immediate supply concerns, although geopolitical risks in the Middle East continue to support oil prices. Traders are also closely monitoring developments in the Red Sea, where security risks remain elevated and could further affect global energy shipments.

While markets welcomed signs of improving supply, analysts warned that any fresh escalation in the US-Iran conflict or renewed disruption to major shipping lanes could quickly reverse the decline and push crude prices higher in the coming weeks.