Oil prices moved higher on Friday as efforts to resolve the conflict with Iran remained deadlocked, with Tehran continuing to block the Strait of Hormuz while U.S. naval forces restrict Iranian crude exports.
Brent crude futures for July gained 89 cents, or 0.8%, to $111.29 a barrel by 08:08 GMT. U.S. West Texas Intermediate futures rose 37 cents, or 0.4%, to $105.44.
Weekly Gains Build on Supply Disruptions
Both major benchmarks were on track for strong weekly advances, with Brent heading for a 5.7% rise and WTI set to climb 11.7%. The June Brent contract surged as high as $126.41 a barrel before expiring on Thursday, marking its highest level since March 2022.
Oil markets have been under upward pressure since late February, when military action by the United States and Israel against Iran triggered the closure of the Strait of Hormuz. The disruption has affected roughly one-fifth of global oil and liquefied natural gas flows.
Diplomatic Efforts Show Little Progress
Although a ceasefire has technically been in place since April 8, prospects for a resolution remain limited. Iranian Foreign Ministry spokesman Esmaeil Baghaei said it was unrealistic to expect quick progress in negotiations, according to the state-run IRNA news agency.
“Expecting to reach a result in a short time, regardless of who the mediator is, in my opinion, is not very realistic,” he said.
Regional Tensions Add to Market Uncertainty
Anwar Gargash, a presidential adviser in the United Arab Emirates, said in a post on X that unilateral Iranian measures cannot be relied upon to ensure safe navigation through the Strait of Hormuz following what he described as “treacherous aggression” against neighbouring states.
Meanwhile, a senior figure within Iran’s Revolutionary Guards warned of “long and painful strikes” against U.S. positions if Washington resumes military action, a threat that briefly pushed oil prices higher during the session.
U.S. Considers Further Military Options
Reports indicated that Donald Trump was due to receive a briefing on Thursday outlining potential new military strikes aimed at pressuring Iran into negotiations, according to a U.S. official.