Brent oil futures on Friday reached around $88 per barrel, extending their weekly decline to more than 5%. West Texas Intermediate crude also fell to around $83.

Reports indicate that traders are increasingly viewing Iran’s situation as an economic and sanctions confrontation, rather than a near-term threat to physical supply. Improved transit flows through the Strait of Hormuz and the proposed Iran-Oman corridor plan have also reduced the perceived supply risk.

Goldman Sachs also reported on Thursday that Gulf oil exports have reached around 15 to 16 million barrels per day.