Global oil prices climbed again on Friday as growing doubts over a potential U.S.-Iran peace agreement reignited market concerns about supply risks and the future of energy flows through the Strait of Hormuz.
As at the time of writing 07:17 am (WAT), Brent crude traded at $105.2 per barrel, rising 2.55%, while WTI crude advanced to $98.32 per barrel, up 2.04%, reflecting renewed bullish sentiment after traders reassessed the likelihood of a diplomatic breakthrough.
The latest rebound follows conflicting signals from negotiations between Washington and Tehran, with major sticking points including Iran’s uranium stockpile and controls around the Strait of Hormuz still unresolved despite reports of progress.
A senior Iranian source said no agreement had been reached, although some gaps had narrowed. U.S. Secretary of State Marco Rubio also acknowledged “some good signs” in the talks but warned that any Iranian restriction on the Strait of Hormuz would remain unacceptable to Washington.
The price recovery comes after both benchmarks fell sharply in the previous session, when markets briefly reacted to optimism surrounding possible diplomatic progress before sentiment shifted once again.
Beyond geopolitical uncertainty, tightening physical oil markets continue to support higher prices, with falling inventories and elevated fuel costs fuelling inflation concerns across major economies and adding pressure on transport, manufacturing and industrial sectors.
Market anxiety has also been reinforced by warnings that full crude flows through the Strait of Hormuz may not normalise quickly, even if hostilities end, leaving traders closely focused on whether diplomacy can deliver a lasting settlement or whether renewed tensions could trigger another round of volatility in global energy markets.