Global oil prices rose more than 1 percent on Friday after renewed fighting between the United States and Iran threatened a fragile ceasefire and raised fresh concerns over security in the Strait of Hormuz, one of the world’s most important energy shipping routes.
Brent crude futures increased by $1.41, or 1.41 percent, to $101.47 per barrel as of early trading, while WTI crude rose $1.12, or 1.18 percent, to $95.93 per barrel. Prices had jumped more than 3 percent at the market open before moderating gains.
The rebound snapped a three-day losing streak for oil, which had been driven by earlier reports suggesting that Washington and Tehran were nearing a ceasefire agreement that could reopen the Strait of Hormuz and ease supply risks.
However, both benchmarks are still on track to end the week down about 6 percent, reflecting volatile swings in sentiment around the conflict and energy supply outlook.
The latest price surge followed accusations from Iran that the United States violated a month-long ceasefire, while Washington said its strikes were retaliatory actions after Iranian forces allegedly fired on US naval vessels passing through the Strait on Thursday.
Iranian military officials claimed US forces targeted an oil tanker, another vessel, and civilian areas in and around the Strait of Hormuz as well as locations on the mainland, escalating tensions further.
Market analysts say the renewed conflict has reignited fears over potential disruption to global oil flows, given that a significant share of the world’s crude shipments pass through the Strait.
