Oil Prices Climb as Strait of Hormuz Tensions and Supply Concerns Persist

Oil prices moved higher on Friday as traders remained cautious over ongoing security risks near the Strait of Hormuz, despite Iran reporting increased vessel traffic through the strategic shipping route. Concerns about global crude supply and geopolitical tensions in the Middle East continued to support gains in both Brent crude and U.S. West Texas Intermediate (WTI) futures.

Brent crude futures rose 60 cents, or 0.57%, reaching $106.32 per barrel in early trading, while WTI crude gained 54 cents, or 0.53%, to trade at $101.71 per barrel. Market sentiment stayed bullish after reports emerged that Iranian personnel had seized a vessel near the United Arab Emirates and redirected it toward Iranian waters.

Tensions in the region escalated further after an Indian cargo ship transporting livestock from Africa to the UAE reportedly sank off the coast of Oman earlier this week. Investors are closely monitoring developments around the Strait of Hormuz, a critical oil transit route responsible for a large share of global energy shipments.

Iran’s Revolutionary Guards stated that around 30 ships had crossed the Strait since Wednesday evening. Although this remains significantly below the usual daily average of 140 vessels seen before the conflict, the increase helped ease some immediate fears surrounding disruptions to global oil supplies.

Analysts said the primary factor driving crude prices remains tight market supply. Yang An, an analyst at Haitong Futures, noted that oil prices experienced volatility during the previous session but still ended near their daily highs, reflecting strong market momentum.

Meanwhile, U.S. President Donald Trump and Chinese President Xi Jinping are expected to conclude a two-day meeting in Beijing on Friday. U.S. Trade Representative Jamieson Greer stated that China remains pragmatic regarding Iran and recognizes the importance of keeping the Strait of Hormuz open for global trade and energy markets.