Oil prices pushed higher on Friday as the standoff over the Iran conflict showed no signs of resolution, with Tehran maintaining its blockade of the Strait of Hormuz while U.S. naval forces continue to curb Iranian crude exports.
Brent crude futures for July rose 89 cents, or 0.8%, to $111.29 a barrel by 08:08 GMT. U.S. West Texas Intermediate futures gained 37 cents, or 0.4%, to $105.44.
Weekly Rally Driven by Supply Disruptions
Both benchmarks were heading for solid weekly gains, with Brent set to rise 5.7% and WTI on course for an 11.7% increase. The June Brent contract briefly touched $126.41 a barrel before expiring on Thursday, marking its highest level since March 2022.
Oil markets have been climbing since late February, when military action by the United States and Israel against Iran led to the closure of the Strait of Hormuz. The disruption has affected roughly 20% of global oil and liquefied natural gas shipments.
Diplomatic Progress Remains Limited
Despite a ceasefire technically in place since April 8, there has been little movement toward a lasting resolution. Iranian Foreign Ministry spokesman Esmaeil Baghaei said expectations for rapid progress in talks were misplaced, according to IRNA.
“Expecting to reach a result in a short time, regardless of who the mediator is, in my opinion, is not very realistic,” he said.
Regional Tensions Continue to Escalate
Anwar Gargash, a senior adviser to the UAE president, warned in a post on X that unilateral Iranian actions cannot be relied upon to ensure safe passage through the Strait of Hormuz following what he described as “treacherous aggression” against neighbouring countries.
At the same time, a senior member of Iran’s Revolutionary Guards threatened “long and painful strikes” on U.S. positions if Washington resumes military operations, briefly pushing oil prices higher during the session.
Washington Weighs Further Military Action
Reports indicated that Donald Trump was scheduled to receive a briefing on Thursday regarding potential new military strikes aimed at forcing Iran back to the negotiating table, according to a U.S. official.
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