Oil prices climbed on Friday as uncertainty surrounding plans to reopen the strategically important Strait of Hormuz raised concerns about continued disruptions to global energy supplies.
Brent crude futures rose 1.03% to $83.34 a barrel, while U.S. West Texas Intermediate (WTI) gained 0.67% to $77.81 a barrel. The rise followed a roughly $3 jump in oil prices during the previous session.
The latest market movement comes amid complicated discussions over reopening the Strait of Hormuz, a crucial route for global oil shipments. Iran, working with Oman, has proposed arrangements for vessels using the waterway, including restrictions on ships from countries considered hostile and penalties for violations.
Under the proposed framework, Iran has also discussed charging fees on cargo passing through the strait, while Oman has suggested a separate fee structure. The United States has opposed such charges, adding another obstacle to an agreement.
Market participants had earlier expected progress toward reopening the waterway to ease supply concerns and push oil prices lower. However, doubts over the terms and practical implementation of any deal have renewed fears that shipping disruptions could persist.
Analysts remain cautious about the prospects of a quick return to normal shipping. Sanctions, insurance restrictions and security concerns could make it difficult for international shipping companies to resume regular operations even if a political agreement is reached.
The uncertainty has kept oil markets highly volatile. Prices had briefly fallen below $80 a barrel for Brent earlier in the week as hopes of a reopening grew, but those gains reversed as doubts over the proposed arrangement increased.
Additional regional tensions are also weighing on sentiment. Recent attacks involving Yemen’s Houthis and Saudi positions have added to concerns about the security of energy infrastructure and shipping routes in the region.
With the Strait of Hormuz remaining at the centre of negotiations, traders are closely watching diplomatic developments. Any concrete agreement that guarantees safe and unrestricted passage could put downward pressure on crude prices, while further delays or escalation could push prices higher.
