Oil prices climbed on Friday as uncertainty surrounding ongoing US-Iran peace negotiations and continued concerns over disruptions in the Strait of Hormuz supported the market.
Brent Crude futures rose $2.38, or 2.3 per cent, to $104.96 a barrel by 0034 GMT, while West Texas Intermediate crude gained $1.73, or 1.8 per cent, to $98.08 per barrel.
Despite Friday’s gains, both benchmarks remained on track for a weekly decline after falling nearly 2 per cent on Thursday to their lowest closing levels in almost two weeks.
Progress In US-Iran Talks Still Unclear
According to Reuters, a senior Iranian source said no final agreement had yet been reached between Tehran and Washington, although “the gaps have narrowed”.
Meanwhile, US secretary of state Marco Rubio said there had been “some good signs” in the negotiations but warned that any toll system imposed in the Strait of Hormuz would be “unacceptable”.
Investors continue to worry that instability in the Middle East could lead to prolonged disruptions in global oil supplies.
“With the outlook for peace talks still uncertain, oil prices are rising on expectations that Middle East instability and supply disruptions linked to the Strait of Hormuz will persist,” commodity analyst Satoru Yoshida of Rakuten Securities told Reuters.
He added that WTI crude is likely to remain within a $90–$110 range next week, similar to trading patterns seen since late March.
Strait Of Hormuz Remains Key Concern
The Strait of Hormuz remains at the centre of global energy concerns.
Before the conflict disrupted flows, nearly 20 per cent of the world’s energy supplies passed through the strait.
Around 14 million barrels per day of oil — roughly 14 per cent of global supply — continue to be affected, including exports from Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.
The head of UAE state oil company Abu Dhabi National Oil Company reportedly said that full oil flows through the Strait of Hormuz may not return before the first or second quarter of 2027, even if the conflict ends immediately.
OPEC+ Expected To Raise Output Slightly
Separately, Reuters reported that seven major OPEC+ nations are expected to approve a modest increase in July oil production during their June 7 meeting.
However, supply deliveries from several producers continue to face disruptions linked to the Iran conflict, keeping energy markets concerned about inflationary pressures and the broader impact on global economic growth.
