Global oil prices rose sharply on Friday after renewed fighting between the United States and Iran threatened a fragile ceasefire and raised concerns over disruptions in the Strait of Hormuz, a critical route for global energy supplies.
Brent crude futures increased by $1.41, or 1.41%, to $101.47 per barrel by 0123 GMT, while US West Texas Intermediate (WTI) crude futures climbed $1.12, or 1.18%, to $95.93 per barrel. Prices had surged more than 3% earlier in the trading session.
The increase reversed three consecutive days of losses driven by reports that Washington and Tehran were close to reaching an agreement aimed at reducing tensions and reopening the Strait of Hormuz, through which nearly one-fifth of the world’s oil and gas supplies transit.
Tensions escalated after Iran accused the United States of violating a month-long ceasefire through attacks on Iranian targets. The US said its actions were retaliatory strikes following Iranian fire on American naval vessels transiting the strait on Thursday.
Iranian military officials claimed US forces targeted an Iranian oil tanker, another vessel, and civilian areas near the strait and mainland territory. Despite the exchange of fire, US President Donald Trump later stated that the ceasefire remained in effect.
The renewed conflict comes as Washington awaits Tehran’s response to a recent peace proposal that reportedly excludes key disputes, including the US demand for the full reopening of the Strait of Hormuz.
Analysts warned that oil supply concerns continue to support higher prices. IG market analyst Tony Sycamore said the global supply outlook remained tight while prospects for a comprehensive peace agreement were still uncertain.
Separately, Reuters reported that the US Commodity Futures Trading Commission has launched an investigation into approximately $7 billion worth of oil trades placed ahead of major Iran war-related announcements by President Trump. Most of the trades reportedly involved short positions on the Intercontinental Exchange (ICE) and Chicago Mercantile Exchange (CME).