Markets react to renewed regional tensions
Oil prices rose more than 1% on Friday after fresh fighting erupted between the United States and Iran, raising fears over disruptions in the Strait of Hormuz, a critical global energy transit route. Brent crude futures increased by $1.41 to reach $101.47 per barrel, while US West Texas Intermediate crude gained $1.12 to trade at $95.93 per barrel. Earlier in the session, both benchmarks surged more than 3%.
The price rebound ended a three-day decline driven by reports suggesting Washington and Tehran were nearing an agreement to reduce hostilities and reopen the Strait of Hormuz. Traders had initially hoped progress in negotiations would stabilize global oil supplies and ease pressure on energy markets.
However, tensions escalated again after Iran accused the US of violating a month-long ceasefire. In response, Washington stated its military actions targeted Iranian positions after Iranian forces allegedly fired on American naval vessels transiting the strategic waterway.
Meanwhile, Iran’s military claimed US strikes targeted an Iranian oil tanker, another ship, and civilian areas near the strait and mainland territory.
Supply concerns continue despite ceasefire claims
Despite the renewed clashes, US President Donald Trump later insisted the ceasefire remained active. Nevertheless, uncertainty surrounding the conflict continued influencing market sentiment and investor confidence.
At the same time, negotiations remain stalled over key disputes, including US demands to fully reopen the Strait of Hormuz, which previously handled nearly one-fifth of global oil and gas supplies before the conflict intensified in February.
Furthermore, IG analyst Tony Sycamore said global oil supply conditions remain tight while prospects for a lasting peace agreement appear uncertain.
Separately, Reuters reported that the US Commodity Futures Trading Commission launched an investigation into nearly $7 billion worth of oil trades linked to Iran war-related announcements made by President Trump.
