Oil prices are declining after the International Energy Agency (IEA) announced that member countries will accelerate the release of 100 million barrels of crude, the availability of which had been pending since an agreement announced in March this year.

Brent crude, the European benchmark, was trading down 0.66% at $105.26 per barrel on Friday morning, after gaining 1.3% on a weekly basis. West Texas Intermediate (WTI), the US benchmark, fell 0.68% to $97.29 per barrel.

According to Baltic Exchange data, the cost of shipping a typical cargo of US crude from the Gulf Coast to Rotterdam dropped by approximately 12% over the past week.

Washington’s efforts to bring down energy costs could cap further price gains, keeping Brent in a range between $104 and $106 per barrel, Vandana Hari, founder of energy analysis firm Vanda Insights, told Bloomberg.

Singapore-Flagged Vessel Sinks in Strait of Hormuz

In focus on Friday is the GFS Pride, a Singapore-flagged vessel that sank while being towed to shore after being struck by a projectile fired by Iran’s Islamic Revolutionary Guard Corps, according to US Central Command. Despite the attack, more than 40 vessels transited the Strait of Hormuz in the past 24 hours, suggesting maritime traffic continues despite heightened regional tensions. The ship was struck on Tuesday, according to the Maritime and Port Authority of Singapore (MPA). All 21 crew members were evacuated without injuries before the vessel sank.

“The conflict is likely to escalate,” analysts at the Eurasia Group wrote in a note to Bloomberg, raising the probability of an intensification of the conflict from 35% to 65%. “The current stalemate has become unsustainable for the United States,” they added.

Iranian attacks on oil tankers and cargo vessels have intensified in recent weeks, raising risks for all forms of commercial traffic through the Strait of Hormuz.

According to data from the US Energy Information Administration, US crude inventories fell by 8.6 million barrels last week — the largest weekly draw since February — partly due to production shutdowns caused by Hurricane Isaias, a strong pace of refinery activity, and elevated export volumes.