Brent headed for 8% weekly drop as Israel and Hezbollah agree ceasefire, Hormuz flows rebound

Israel and Hezbollah reached a ceasefire agreement, while the U.S. and Iran signed a peace memorandum, helping restore tanker traffic through the Strait of Hormuz with at least four tankers transiting the waterway on Friday. The deal would lift U.S. sanctions on Iranian oil exports and release more than 85 million barrels of crude stranded in the Middle East Gulf into global markets. Analysts expect the global oil market to gradually move into surplus, with Brent possibly easing to $80 a barrel by year-end and slipping to $60 to $65 per barrel over the medium term.