Oil Prices Rise Amid Uncertainty Over Hormuz Strait Negotiations

International oil prices advanced during Friday trading, driven by growing concerns about energy supply reliability and global shipping flows, alongside media disclosures regarding Iran’s stated conditions for reaching an agreement on the Strait of Hormuz.

Brent crude futures rose 99 cents, or 1.2%, to $83.48 per barrel. West Texas Intermediate (WTI) futures gained 85 cents, or 1.1%, to $78.84 per barrel.

On Thursday, oil futures surged more than $3 per barrel at settlement. That same day, Iran continued its threats against vessels transiting the Strait of Hormuz—a waterway that previously carried nearly one-fifth of the world’s oil and liquefied natural gas supplies before the outbreak of war in late February.

Thursday’s Price Decline and Diplomatic Context

Oil prices fell on Thursday as investors assessed whether progress in talks between Iran and Oman could pave the way for a U.S.-Iran agreement to end the five-month-old war and reopen the Strait of Hormuz.

Earlier in the week, prices had retreated amid rising expectations of a conflict resolution. Yet benchmark Brent crude breached the $80-per-barrel threshold in the previous session—its first such move above that level since July 13.

Market Skepticism and Implementation Challenges

Tim Waterer, chief market analyst at KCM Trade, said: “Markets have already seen at least one arrangement this year that did not last long, so confidence remains low that a new agreement will fully restore tanker traffic to normal.”

Four industry sources indicated that the proposed Iranian agreement—which includes threats against shipping in the Strait of Hormuz—is difficult to implement due to U.S. sanctions and insurance requirements imposed on any related payments.

U.S. President Donald Trump told reporters he believes the war will end soon.