West Texas Intermediate (WTI) oil prices remained stable around $89.50 per barrel during Asian trading hours on Friday, following a previous day of losses [1]. The market steadiness comes after reports that the US military escorted 40 commercial vessels carrying approximately 18 million barrels of oil through the Strait of Hormuz earlier this week, a move aimed at securing supply routes amid heightened regional tensions [1]. According to CNN, US forces intercepted a cruise missile and repelled multiple drone attacks during this operation, which has helped stabilize market sentiment regarding supply security and exerted slight downward pressure on global crude prices [1].
Despite this stabilization, broader geopolitical risks continue to constrain any significant drop in oil prices. Recent US strikes on Iran and renewed Israeli threats against Tehran have reignited fears of regional supply disruptions, counterbalancing the positive impact of the US military's actions [1]. Additionally, Russian President Vladimir Putin's openness to peace negotiations has provided some relief to the market, tempering upward price pressures [1].
On the domestic front, US diesel prices surged to record highs, reaching $5.820 per gallon on Thursday, as reported by Reuters citing GasBuddy. This spike is attributed to a global supply crunch intensified by ongoing hostilities between the US and Iran and disruptions from Ukrainian strikes on major Russian diesel-exporting refineries [1].
Economists at National Bank Financial highlighted a shift in Canada’s external balances, noting that the energy surplus narrowed from C$15.0 billion to C$14.5 billion, while the non-energy deficit widened from C$10.8 billion to C$13.7 billion. This underscores Canada’s growing reliance on energy exports to offset broader trade weaknesses [1].
CONCLUSION
WTI oil prices have stabilized following US military actions to secure oil shipments through the Strait of Hormuz, but ongoing geopolitical tensions continue to limit any significant price declines. Record-high US diesel prices and shifts in Canadian trade balances highlight the broader impact of supply disruptions and reliance on energy exports. The market remains cautious, balancing supply security with persistent regional risks.