Global oil prices rose sharply on Friday after remarks by Donald Trump and Abbas Araqchi weakened hopes for a quick agreement to end attacks and restrictions around the Strait of Hormuz.
Brent Crude futures settled at US$109.26 per barrel, rising by US$3.54 or 3.35%.
Meanwhile, West Texas Intermediate crude futures closed at US$105.42 per barrel, up US$4.25 or 4.2%.
Over the week, Brent crude increased by 7.84% while WTI gained 10.48%, reflecting growing uncertainty surrounding the fragile ceasefire linked to the Iran conflict.
Analysts at Commerzbank said tensions between the United States and Iran had once again become increasingly confrontational.
Iranian Foreign Minister Abbas Araqchi stated that Tehran has “no trust” in Washington and would negotiate only if the United States demonstrated seriousness, while also warning that Iran remains prepared for further conflict if necessary.
Trump meanwhile stated that he and Xi Jinping agreed Iran must not be allowed to obtain nuclear weapons and that the Strait of Hormuz should be reopened.
Roughly one-fifth of the world’s oil and liquefied natural gas normally passes through the Strait, making it one of the world’s most critical energy shipping routes.
Although China did not publicly comment on Trump’s claims regarding discussions with Xi, the Chinese Foreign Ministry issued a statement calling for the conflict to end.
The market also reacted to reports suggesting China may increase oil purchases from the United States, while Trump indicated he could potentially ease sanctions on Chinese companies importing Iranian oil.
Analysts warned that continued disruptions in the Strait of Hormuz could place further pressure on already tightening global oil supplies.
Shipping and market analysts also noted that vessel movement through the Strait remains significantly below normal levels despite some recent improvement.
The report was originally published by Reuters.
