Crude oil prices fell about 2 percent on Friday and were headed for sharp weekly losses as concerns over supply disruptions eased, with more stranded oil tankers resuming movement through the Strait of Hormuz.

Brent crude futures declined $1.47, or 1.95 percent, to $73.79 a barrel as of 0421 GMT. US West Texas Intermediate (WTI) crude fell $1.44, or 2 percent, to $70.48 a barrel.

The decline was driven by growing expectations that a possible agreement between Washington and Tehran could allow additional Iranian crude exports and lower risks to oil shipments through the Strait of Hormuz, a key route for global crude trade.

Improving confidence in a lasting peace agreement has also encouraged higher tanker traffic through the Strait of Hormuz. At the same time, crude exports from the Middle East and West Africa have increased, easing concerns over possible supply disruptions, PTI reported.

The investors are closely tracking developments in the US-Iran negotiations and crude flows through the Strait of Hormuz for further direction on oil prices.

Meanwhile, Saudi Aramco resumed oil loading at its Ras Tanura terminal in the Gulf on Friday after a nearly four-month halt, according to shipping data from LSEG, reproted Reuters.

“There is a general selloff as the market reacts to the increased flows exiting the Strait of Hormuz and China not yet picking up crude demand,” June Goh, senior oil market analyst at Sparta Commodities told Reuters.