Oil falls as partial recovery in Hormuz traffic eases supply fears; CBA puts flows at 30% to 35% of pre-war levels

Oil prices fell on Friday, 31 July 2026, on signs of a recovery in crude flows through the Strait of Hormuz. According to CNBC, West Texas Intermediate futures for September delivery dropped 1.62% to $82.24 a barrel, while Brent crude, the international benchmark, fell 0.98% to $88.16.

Commonwealth Bank of Australia said in a note the same day that stronger oil flows through the Strait of Hormuz had eased market concerns, after an exchange of strikes between Iran and the United States earlier this week briefly pushed Brent above $93. The bank estimates traffic through the waterway has recovered to roughly 30% to 35% of pre-war levels, adding that a rebound to around 50% to 60% of normal flows could be enough to reassert oversupply conditions in the global oil market.

Investors were also weighing President Donald Trump's call to add tariffs on Iran to a bipartisan sanctions bill targeting Tehran and Moscow. According to the Office of the U.S. Trade Representative, the United States imported just $1.4 million in goods from Iran in 2025.