Crude oil prices rebounded on Friday after renewed tensions between the United States and Iran reignited concerns over global supply disruptions and the reopening of the Strait of Hormuz, one of the world’s most critical oil shipping routes.
According to a Reuters report, Brent crude oil rose by 67 cents, or 0.7 percent to $100.73 per barrel while U.S. West Texas Intermediate crude oil gained 45 cents to $95.26 per barrel.
The recovery reversed part of the sharp losses recorded earlier in the week when hopes of a possible peace agreement between Washington and Tehran pushed oil prices lower.
Market sentiment shifted after Iran accused the United States of violating a ceasefire agreement through attacks on vessels and civilian infrastructure, while Washington defended its actions as retaliation for attacks on U.S. naval assets.
The renewed geopolitical uncertainty has increased fears that the Strait of Hormuz may remain partially restricted, threatening global crude oil and liquefied natural gas supplies.
The Strait of Hormuz remains one of the most strategically important energy corridors globally, handling a significant portion of global crude exports.
Analysts said the oil market continues to price in a sizeable geopolitical risk premium as traders assess the possibility of further escalation in the Middle East.
Reuters reported that despite Friday’s rebound, oil prices remain on track for a weekly decline of about 6 percent following earlier optimism surrounding ceasefire negotiations.
Recent market volatility has been driven by rapid swings between fears of supply disruption and hopes of diplomatic resolution between both countries.
Trading Economics data showed Brent crude trading around $100.98 per barrel while WTI crude hovered near $95.18 per barrel during Friday’s session.
Analysts have warned that any prolonged disruption to shipping activities in the Gulf region could tighten global supply conditions further and sustain elevated energy prices.
Meanwhile, investors are also monitoring broader market developments including OPEC+ production policy, global demand trends and ongoing concerns about future oversupply in the oil market.
