Oil markets have softened their war premium as traffic recovers through the Strait of Hormuz, easing concerns that followed U.S.-Iran strikes earlier in the week, according to Commonwealth Bank of Australia.
Key facts
- Commonwealth Bank of Australia noted stronger oil flows through the Strait of Hormuz on Friday.
- The improved flows eased market concerns following U.S.-Iran strikes earlier in the week.
- Oil price movements were choppy across the trading session.
- The developments were reported by CNBC on July 31, 2026.
Oil prices moved as recovering traffic through the Strait of Hormuz began to temper the war premium that had built into markets following U.S.-Iran strikes earlier in the week, according to reporting from CNBC.
In a note issued on Friday, Commonwealth Bank of Australia said that stronger oil flows through the Strait of Hormuz had eased market concerns. The bank tied that easing directly to the improved movement of oil through the strategic waterway in the wake of the strikes.
The strait is one of the world’s most closely watched chokepoints for oil transit, and disruptions or fears of disruption there frequently feed into short-term price swings. The reference to a ‘war premium’ reflects the additional cost markets had priced in amid the heightened tensions between the United States and Iran.
CNBC’s coverage across Friday described the price action in varying terms through the day, with reports noting prices easing, moving higher, and trading choppy at different points. That range of characterizations underscores an unsettled session as traders weighed the recovering flows against lingering geopolitical risk.
The core message from Commonwealth Bank of Australia remained consistent: as oil continued to move through the Strait of Hormuz, the market’s most acute concerns from earlier in the week began to subside, softening the premium that tensions had introduced.
Why it matters
The Strait of Hormuz is a critical route for global oil shipments, so any interruption or recovery there can ripple quickly through energy prices worldwide. Easing tensions and restored flows can help stabilize markets that had priced in the risk of conflict between the United States and Iran.
Frequently asked questions
Why were oil prices affected this week?
Prices carried a war premium following U.S.-Iran strikes earlier in the week, but that premium began to ease as traffic recovered through the Strait of Hormuz, according to CNBC and Commonwealth Bank of Australia.
What did Commonwealth Bank of Australia say?
In a note on Friday, the bank said stronger oil flows through the Strait of Hormuz had eased market concerns following the U.S.-Iran strikes.
How did oil prices behave during the session?
CNBC's reporting on July 31, 2026 variously described prices as easing, moving higher, and choppy through the day.