Oil futures experienced a notable decline on Friday, with Brent crude settling at $95.20 per barrel after a 12.7% decrease over the week, the largest drop since August 2022. This decline is attributed to heightened tensions ahead of US-Iran ceasefire talks and continued restrictions on oil flow through the Strait of Hormuz. US West Texas Intermediate crude also fell, closing at $96.57, marking a 13.4% weekly decline, the steepest since April 2020. Analysts from Commerzbank highlighted concerns about the resumption of ship traffic through the Strait, which has been severely limited, with volumes at less than 10% of normal. The ongoing conflict has led to significant disruptions in oil production, with West Asia producers cutting approximately 7.5 million barrels per day in March, and projections indicating further outages. Meanwhile, Saudi Arabia reported a reduction in its oil production capacity by 600,000 barrels per day due to attacks on its energy facilities. As the situation evolves, the potential for a supply deficit in the oil market looms, prompting refiners to prepare for future loading programs.