Oil prices rose by more than $1 per barrel on Friday as uncertainty over efforts to end the Iran war continued to raise concerns about the reopening of the Strait of Hormuz.
Brent crude futures gained $1.06, or 1.3 per cent, to settle at $83.55 a barrel, while US West Texas Intermediate rose 89 cents, or 1.15 per cent, to $78.18.
The gains came after oil prices jumped by more than $3 a barrel on Thursday following reports that Iran was considering a bill that would restrict US and Israeli vessels from using the strategic waterway.
The Strait of Hormuz, located between Iran and Oman, is a major route for global energy supplies, with about one-fifth of the world’s oil and liquefied natural gas normally passing through it.
However, despite the latest rise, Brent remained on course for a weekly loss of more than eight per cent, while WTI was heading for a decline of over seven per cent.
Market uncertainty has increased as negotiations involving Iran and Oman continue, with traders closely watching whether an agreement would allow ships, particularly those linked to the United States, to safely pass through the strait.
Iran and Oman are reportedly discussing arrangements for ships using the waterway, although the position of the United States remains unclear.
The situation has also been complicated by disagreements over possible charges on cargoes passing through the strait.
A senior Iranian official said Tehran was seeking fees of between five and seven per cent of the value of cargoes, while Oman was considering a charge of about three per cent. The United States, however, wants vessels to pass without such fees.
Industry sources have also raised concerns that US sanctions and insurance restrictions could make the proposed arrangement difficult to implement.
Analysts said the uncertainty over when the conflict will end and when the Strait of Hormuz can fully reopen has kept oil traders on edge.
The prolonged disruption has also raised concerns about global oil supplies as commercial reserves continue to be depleted.
The conflict, which began after the United States and Israel launched strikes on Iran in late February, has now entered its sixth month, with diplomatic efforts yet to produce a lasting settlement.
For the oil market, the main concern remains whether the Strait of Hormuz will be fully reopened and how quickly normal shipping operations can resume.
