KEY POINTS
- Oil prices ended Friday mixed but posted strong weekly gains due to supply concerns.
- Disruptions in the Strait of Hormuz significantly tightened global oil supply.
- Ongoing U.S.–Iran diplomatic efforts are creating uncertainty and driving market volatility.
Oil prices fluctuated sharply on Friday, ultimately closing mixed. Brent crude rose slightly to $105.33 per barrel, while U.S. West Texas Intermediate (WTI) fell to $94.40. Despite the mixed daily performance, both benchmarks recorded strong weekly gains.
Concerns over disrupted oil supply, particularly around the Strait of Hormuz, pushed prices higher throughout the week. Brent climbed about 16%, while WTI gained nearly 13%, as limited shipping activity and regional instability tightened global supply.
U.S.–Iran Talks Weigh on Market Sentiment
Reports of renewed diplomatic efforts between the United States and Iran pressured prices during the session. U.S. President Donald Trump indicated Iran may present an offer to meet U.S. demands, while envoys were reportedly sent to Pakistan for negotiations.
Tensions escalated after Iran seized cargo ships and restricted movement through the Strait of Hormuz, a key global oil route. With only a handful of vessels passing through recently, traders remain wary of prolonged disruptions.
Analysts say oil prices could climb further if peace talks fail and conflict resumes. Continued uncertainty, even under a ceasefire, is expected to keep markets volatile and sensitive to geopolitical developments.
