Oil prices pushed higher on Friday amid renewed concerns over escalating military activity in the Middle East, after Iran released footage showing commandos boarding a cargo vessel in the Strait of Hormuz and reports indicated its air defences had engaged “hostile targets.”
Brent crude futures rose 99 cents, or 0.94%, to $106.06 per barrel at 0410 GMT, while U.S. West Texas Intermediate crude gained 71 cents, or 0.73%, to $96.56.
For the week, Brent advanced 17.13% and WTI climbed 15.13%, marking the second-largest weekly rise since the conflict began.
The closure of the Strait of Hormuz following the onset of hostilities between the U.S., Israel and Iran has disrupted roughly 20% of global oil and liquefied natural gas flows.
Both benchmarks had already jumped more than 3% on Thursday, rising about $5 per barrel after reports of air defence systems engaging targets over Tehran and signs of internal divisions between hardline and moderate factions in Iran.
U.S. President Donald Trump said Iran may have increased its weapons stockpile “a little bit” during the two-week ceasefire, but added that U.S. forces could neutralise it within a day.
Haitong Futures said the current ceasefire increasingly resembles a staging phase for renewed conflict. The firm warned that if U.S.-Iran negotiations fail to produce meaningful progress by the end of April and fighting resumes, oil prices could move to fresh highs for the year.
Iran on Thursday released footage it said showed commandos boarding a large cargo ship following the breakdown of peace talks, reinforcing its grip on the Strait of Hormuz, a critical route through which around 20% of global oil and gas typically flows.
As markets and policymakers look for a lasting resolution, Trump said he would not set a “timetable” for ending the conflict with Iran and emphasised his aim of securing “a great deal.”
“Don’t rush me,” he said when asked how long he was prepared to wait for a comprehensive peace agreement with Tehran.
Analysts caution that extended disruption in the Strait of Hormuz could push global inventories of crude and refined fuels below five-year seasonal averages by late May or early June, reintroducing a supply risk premium into oil markets, according to Mingyu Gao, chief researcher for energy and chemicals at China Futures.
Separately, Trump said in a social media post that Israel and Lebanon had agreed to extend their ceasefire by three weeks after high-level discussions at the White House.
“The Meeting went very well! The United States is going to work with Lebanon in order to help it protect itself from Hezbollah,” Trump wrote on Truth Social. Hezbollah, the Iran-aligned militant group engaged in fighting with Israel, was not present at the talks and maintains that it has “the right to resist” occupying forces.
Trump added that he expects to host Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun in the near future.
Prior to that announcement, Israel had warned it was prepared to resume military operations against Iran.
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