Oil prices are on track for their largest weekly decline since June 2022, with Brent crude futures at $95.97 per barrel and West Texas Intermediate at $98.11. This drop follows a ceasefire agreement between the US and Iran, brokered by Pakistan, although hostilities continue. The flow of oil through the Strait of Hormuz is heavily restricted, with ship traffic at less than 10% of normal levels, leading to concerns about supply shortages. Analysts from Commerzbank note that if the situation does not improve, prices could rise again. Additionally, Saudi Arabia has seen a reduction in oil production capacity by 600,000 barrels per day due to attacks on its energy facilities, further complicating the market dynamics. As investors weigh the impact of lower Saudi output against diplomatic developments, the physical oil market reflects acute scarcity.