Global oil prices moved higher on Friday as renewed uncertainty surrounding the Strait of Hormuz offset earlier optimism over a potential diplomatic breakthrough between the United States and Iran.
As at the time of writing 06:10 am (WAT), Brent crude rose 0.90% to $80.57 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.91% to $76.54 per barrel.
According to Oilprice.com, citing vessel-tracking data compiled by Bloomberg, tanker traffic through the Strait of Hormuz slowed sharply after planned U.S.-Iran negotiations collapsed before formal talks could begin.
Bloomberg data cited by Oilprice.com showed that no tanker was observed departing the Persian Gulf through the strategic waterway on Friday morning, a stark contrast to the surge in vessel movements recorded a day earlier when hopes of a diplomatic agreement briefly boosted market confidence.
The collapse of the talks has renewed concerns about the security of the Strait of Hormuz, a key global oil chokepoint through which roughly one-fifth of the world's oil supply passes.
Reacting to the failed negotiations, U.S. President Donald Trump wrote on Truth Social: "We didn't meet out of desperation, Iran did. They are FINISHED! We'll play out the 60 days. They get no money, not ten cents!"
Oilprice.com also reported that maritime intelligence firm Windward recorded 18 tanker transits through the Strait between June 17 and June 18, the highest level since the latest phase of the regional conflict began. The firm further noted that tankers carrying about 80 million barrels of crude were preparing to transit the route before uncertainty resurfaced.
Despite hopes that tensions could eventually ease, major tanker operators remain cautious. Jotaro Tamura, Chief Executive Officer of Mitsui OSK Lines, told the Financial Times that shipping companies were unlikely to rush back into the region.
"Given the experiences in the last couple of months, I think it's reasonable to assume that it may take at least a couple of weeks, if not a month," Tamura said.
Analysts say the latest developments have once again placed geopolitical risk at the centre of oil market sentiment, with traders closely monitoring events in the Middle East for signs of potential supply disruptions and further price volatility.