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Oil prices advanced on Friday after fresh hostilities between the United States and Iran reignited concerns over the durability of the fragile ceasefire and clouded prospects for reopening the Strait of Hormuz, a vital corridor for global crude oil and liquefied natural gas shipments.

Brent crude futures rose 67 cents, or 0.67%, to $100.73 per barrel by 0650 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 45 cents, or 0.47%, to $95.26 per barrel. Earlier in the session, both benchmarks had surged more than 3% as traders reacted to the latest escalation.

The rebound followed three consecutive sessions of losses driven by optimism earlier this week that Washington and Tehran were nearing a peace agreement capable of halting the conflict, even though broader disputes over Iran’s nuclear ambitions remained unresolved.

Despite Friday’s recovery, both oil benchmarks are still on track for weekly declines of around 6%.

Market volatility intensifies amid geopolitical uncertainty

“The market is on the cusp of a complete breakdown,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

“Price formation is no longer anchored in a pragmatic reading of the war’s trajectory or the physical realities in the Strait of Hormuz.”

Crude prices accelerated higher after Iran accused the United States of breaching the ceasefire that had been in place for the past month. U.S. officials responded by saying recent military strikes were retaliation for Iranian attacks on U.S. Navy vessels moving through the Strait of Hormuz on Thursday.

Iranian military officials stated that American forces struck both an Iranian oil tanker and another vessel, as well as civilian locations in the Strait and on Iranian soil.

Even with the renewed military activity, U.S. President Donald Trump later told reporters on Thursday that the ceasefire remained operational.

“The U.S. administration continues to oversell the prospects of a thaw, and an optimism-biased market buys into it,” Vanda Insights’ Hari said.

“Curiously, each time, the rebound is gradual and incomplete, making the head fakes at least somewhat effective.”

Supply concerns remain elevated as negotiations continue

The latest confrontation unfolded while Washington awaited Tehran’s response to a revised peace proposal. Reports indicated that the proposal avoided several contentious subjects, including U.S. demands to reopen the Strait of Hormuz, which before the conflict began on February 28 handled roughly 20% of global oil and LNG trade.

“On the supply front, the picture remains tight,” IG analyst Tony Sycamore said in a note.

Separately, Reuters reported on Thursday that the U.S. Commodity Futures Trading Commission has launched an investigation into approximately $7 billion worth of oil trades executed ahead of major Trump announcements related to the Iran conflict.

According to the report, most of the transactions involved bearish positions placed on the Intercontinental Exchange (ICE) and Chicago Mercantile Exchange (CME). The trades reportedly anticipated falling oil prices before Trump announced delays to military action, ceasefire agreements or other Iran-related policy decisions that later pushed crude markets lower.

Gold prices traded slightly higher on Friday and remained on course for a weekly advance as investors balanced optimism surrounding a potential U.S.-Iran peace agreement with ongoing concerns over the stability of the current ceasefire. Market participants also stayed on the sidelines ahead of key U.S. employment figures due later in the session.

Spot gold rose 0.8% to $4,723.52 per ounce by 01:35 ET (05:35 GMT), while U.S. Gold Futures added 0.5% to reach $4,731.96.

Bullion has climbed nearly 2% over the week after recovering from one-month lows touched earlier in May.

Strait of Hormuz tensions keep markets on edge

Investors continued to follow developments in the Middle East after U.S. and Iranian forces exchanged fire on Thursday near the Strait of Hormuz, marking the most serious breach so far of the ceasefire established one month ago.

Iran later stated that conditions in the affected coastal regions had normalized, while U.S. President Donald Trump told ABC News that the ceasefire remained in place.

Although gold is commonly viewed as a safe-haven investment, prices also benefited from easing inflation concerns after hopes for a broader diplomatic agreement contributed to a pullback in oil prices from recent highs.

Reduced inflationary pressure could support gold demand by lowering expectations that interest rates will stay elevated for an extended period.

A softer U.S. dollar earlier in the week also helped support bullion prices.

The U.S. Dollar Index was down 0.1% during Asian trading hours after ending the previous volatile session largely unchanged.

Markets await U.S. labor report for interest rate signals

Traders remained cautious ahead of the upcoming U.S. nonfarm payrolls report, which may provide additional guidance regarding the Federal Reserve’s future monetary policy path.

Economists expect payroll growth of approximately 65,000 jobs, while the unemployment rate is projected to remain unchanged at 4.3%. A weaker labor report could increase expectations for future Fed interest rate cuts and offer further support to non-yielding assets such as gold.

Gold prices have fallen more than 10% since tensions involving Iran escalated in late February, as surging oil prices fueled inflation fears and strengthened expectations for higher interest rates.

Silver, platinum and copper also move higher

Among other precious metals, spot silver gained 1.9% to $79.95 per ounce, while platinum advanced 1.7% to $2,060.30 per ounce.

Benchmark Copper Futures on the London Metal Exchange rose 0.4% to $13,396.33 per ton, while U.S. Copper Futures climbed 1.4% to $6.21 per pound.

Some shareholders in Unilever (LSE:ULVR) are expected to seek reassurances that the company’s environmental and anti-deforestation standards will be maintained after the planned spin-off and merger of its food business with U.S.-based McCormick (NYSE:MKC).

The $65 billion transaction, announced in March, will combine Unilever’s food division with McCormick to create a major global food company featuring brands such as Hellmann’s mayonnaise and Cholula hot sauce. The enlarged business will significantly increase McCormick’s scale and introduce a more complex global supply chain tied to agriculture, commodities and smallholder farming operations.

Investors Seek Commitments on Sustainable Sourcing

Given Unilever’s longstanding reputation for sustainability leadership, several investors are closely watching how the merged company intends to manage sourcing policies and environmental standards.

“We will be seeking assurances about the intention of the combined company to uphold and build upon best practice with regard to deforestation-free sourcing of commodities,” said Vemund Olsen, senior analyst at Norwegian asset manager Storebrand, which is among the top 100 shareholders in Unilever and also owns shares in McCormick, according to LSEG data.

Olsen said these standards include avoiding sourcing from deforested or converted land, maintaining a public complaints mechanism and ensuring complete traceability of commodities back to plantations.

A spokesperson for Frankfurt-based Union Investment, which is a top-40 shareholder in both companies according to LSEG data, said the firm would seek transparency “about how it integrates sustainable practices moving forward”.

U.S. Sustainability Disclosure Rules Less Demanding

Unlike Unilever, McCormick is not subject under U.S. regulations to the same level of detailed sustainability disclosure required in Europe. Although companies with substantial European operations are expected to comply with EU sustainability reporting standards, implementation could take several years, creating a transition period where disclosure levels depend largely on voluntary corporate commitments.

“If Unilever-McCormick decide to turn their backs (on sustainability), this could create significant risk for shareholders and the new entity,” said Cailin Dendas, environmental health program senior coordinator at shareholder advocacy group As You Sow.

“We saw this happen when Kellanova separated from Kellogg in 2023 and dropped its pesticide commitments, among other sustainability goals.”

Unilever Expected to Retain Influence After Deal Completion

Unilever is set to remain the largest shareholder in the combined company with an ownership stake of close to 10% and four board representatives. However, smaller investors are likely to have more limited direct influence over strategic decisions and governance.

Asked whether Unilever intends to use its ownership position to encourage McCormick to maintain similar sustainability standards, a company spokesperson told Reuters: “We are working closely with McCormick ahead of the completion of the transaction to support the transition of our Foods related sustainability programmes and commitments.”

McCormick Faces Pressure to Expand Sustainability Capabilities

Hannah Schalk, an analyst at ESG ratings provider Sustainalytics, described McCormick as carrying “medium-risk” sustainability exposure. She noted that the company’s sustainability reporting does not currently include a formal company-wide no-deforestation pledge and provides less detail regarding traceability, auditing and certification procedures.

Schalk also said McCormick may face challenges scaling its sustainability systems as its supply chain expands significantly following the merger.

McCormick has acknowledged in previous reporting that achieving emissions and sourcing targets depends partly on improving supplier engagement and data collection across its network.

“While we cannot comment on future targets at this time, we are already well underway on a comprehensive strategic update process for our sustainability program, and we’ll share more details on our approach as the process unfolds,” McCormick said in written comments.

Tern plc (LSE:TERN) has announced the results of its latest open offer to qualifying shareholders, revealing that valid applications were received for approximately 67.7 million new ordinary shares, representing around 63% of the 107.3 million shares made available under the offer.

Subject to shareholder approval at an upcoming general meeting and admission of the new shares to AIM trading, the fundraising is expected to generate roughly £406,000. Trading in the newly issued shares is anticipated to commence on 11 May 2026.

Board and Management Participation Signals Confidence

The company said members of the board and senior management team are participating in the fundraising. Interim Non-Executive Chair Iain Ross and PDMR Albert Sisto both subscribed for additional shares, modestly increasing their holdings in the business.

Management participation in the raise may be interpreted as a sign of confidence in Tern’s strategy and supports the company’s efforts to secure additional funding for ongoing operations and investments across its Internet of Things-focused portfolio.

Weak Financial Performance Continues to Pressure Outlook

Tern’s outlook remains heavily constrained by weak financial performance, including a sharp decline in revenue, substantial losses and negative operating and free cash flow. Technical indicators also continue to point toward a prolonged downtrend, although some tentative signs of oversold stabilisation have emerged.

Valuation metrics remain difficult to justify given the company’s negative earnings profile and the absence of dividend yield data.

More about Tern plc

Tern plc is an AIM-listed investment company focused on building value through investments in Internet of Things technology businesses. The company targets both early-stage and growth-oriented IoT ventures, seeking to support their development through strategic investment and active portfolio management with the goal of enhancing shareholder returns.

Altona Rare Earths (LSE:REE), a London-listed explorer focused on African critical minerals including rare earths, fluorspar, gallium, copper and silver, continues to build a diversified project portfolio centred on the Monte Muambe Project in Mozambique and the Sesana Copper-Silver Project in Botswana. The company’s Monte Muambe asset includes a 25-year mining licence, established mineral resources and support from a U.S.-backed prefeasibility grant, positioning the project to supply materials used in clean energy, defence, industrial and high-technology applications.

Company Says No Fundamental Reason Behind Recent Share Price Swings

The company stated that its board is not aware of any fundamental developments that would explain the recent volatility in its share price. Management also reaffirmed confidence in the Monte Muambe Project following the release of updated mineral resource estimates.

Altona further clarified that a growth capital facility arranged with Zeus has not yet been utilised and that no shares have been sold under the agreement. The company added that any future drawdowns are expected to occur only at or above a price of 4 pence per share, in an effort to reassure investors regarding potential dilution and valuation concerns.

Financial Weakness Offset by Strong Technical Momentum

Altona Rare Earths’ outlook remains constrained by weak financial fundamentals, including the absence of revenue generation, ongoing losses, continued cash burn and increasing leverage levels.

However, technical indicators remain supportive, with the shares trading above major moving averages and the MACD signalling positive momentum. Valuation metrics remain limited by negative earnings and the lack of dividend-related data.

More about Altona Energy

Altona Rare Earths is a London Main Market-listed exploration and development company focused on critical raw materials projects across Africa, including rare earths, fluorspar, gallium, copper and silver. Its flagship Monte Muambe Project in Mozambique contains multi-commodity mineralisation and benefits from a 25-year mining licence, a maiden JORC resource estimate and support from a U.S. development grant. The company is also advancing high-grade fluorspar production initiatives and evaluating gallium recovery opportunities, while the Sesana Copper-Silver Project in Botswana provides additional exposure to growing demand linked to clean energy and advanced technologies.

Gulf Marine Services (LSE:GMS) reported a weaker first quarter after war-related disruption in the Gulf led to the precautionary evacuation of four vessels operating in a Gulf Cooperation Council state. The disruption reduced fleet utilisation to 74%, contributing to a 10% year-on-year decline in revenue to $38 million and a 24% fall in EBITDA to $19.5 million.

Despite the operational challenges, the company continued to benefit from higher average day rates and reported an increase in backlog to $660 million.

Fleet Expansion and Geographic Diversification Support Long-Term Strategy

The group has expanded its fleet through the addition of a new mid-class vessel, partly financed via a bridge loan facility. Gulf Marine Services has also redeployed assets into Europe and Latin America as part of efforts to strengthen its renewables exposure and diversify geographically.

Management said leverage remains below its target of 2x and reaffirmed 2026 EBITDA guidance of between $105 million and $115 million. The company also postponed a decision regarding shareholder distributions while crews continue returning to evacuated vessels and the order book improves further to $666 million. The developments highlight the balance between near-term geopolitical risks and the company’s broader long-term growth ambitions.

Financial Strength Offset by Free Cash Flow Weakness

Gulf Marine Services’ outlook continues to benefit from improving financial fundamentals, including ongoing deleveraging, sustained profitability and generally positive free cash flow generation.

However, these strengths are partly offset by a decline in net income during 2025 and a sharp reduction in free cash flow. Technical indicators remain mixed, while valuation metrics are viewed as broadly mid-range, providing limited additional upside support.

More about Gulf Marine Services

Gulf Marine Services is a London-listed offshore marine contractor established in Abu Dhabi in 1977. The company specialises in advanced self-propelled, self-elevating support vessels serving the offshore oil, gas and renewables industries. Operating a fleet of 15 vessels across the Middle East, Europe, the Americas and Africa, Gulf Marine Services supports activities including platform maintenance, well intervention and offshore wind installation for global energy clients.