New York (TDI): Oil prices jumped on Friday after renewed military clashes between the United States and Iran raised concerns over supply stability and threatened a fragile ceasefire agreement.
The escalation also dampened expectations of progress on reopening the Strait of Hormuz, a crucial global energy shipping route.
Brent crude gained $1.41 (1.41%) to reach $101.47 per barrel, while US West Texas Intermediate (WTI) rose $1.12 (1.18%) to $95.93 per barrel in early trading. Prices had initially climbed more than 3% at market open, reversing earlier losses from the week.
Despite the rebound, both benchmarks are still projected to decline around 6% for the week. The price surge followed accusations from Iran that the US violated the month-long ceasefire. Washington, meanwhile, said its strikes were in response to Iranian attacks on US naval vessels operating near the Strait of Hormuz.
Iran alleged that US forces targeted an oil tanker, another vessel, and civilian areas near the strait and inland locations. The US military rejected claims that its assets were hit.
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US President Donald Trump said the ceasefire remained in place, attempting to downplay concerns about further escalation.
Markets had earlier been encouraged by reports that Washington and Tehran were nearing a potential agreement that could end hostilities and reopen the Strait of Hormuz. However, key issues, including Iran’s nuclear program and control of the strategic waterway, remain unresolved.
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Analysts say supply conditions remain tight, with ongoing uncertainty keeping oil markets sensitive to developments in the conflict.
