LONDON – Oil prices climbed more than one per cent on Friday after US President Donald Trump signalled a tougher stance on Iran, while concerns over shipping security in the Strait of Hormuz continued to support the market.
Brent crude futures increased by $1.32, or 1.25pc, to reach $107.04 per barrel, while US West Texas Intermediate (WTI) crude rose $1.33, or 1.31pc, to $102.50 per barrel during early trading.
For the week, Brent crude recorded a gain of nearly six per cent, while WTI advanced more than seven per cent amid uncertainty surrounding the fragile ceasefire linked to tensions involving Iran.
In an interview to a TV, Trump said he would not remain patient for much longer regarding Iran and urged Tehran to reach an agreement.
Meanwhile, US Trade Representative Jamieson Greer said China was taking a practical approach toward the Iran situation and stressed the importance of keeping the Strait of Hormuz open for global trade.
Trump and Chinese President Xi Jinping were expected to conclude a two-day summit on Friday, focused on trade and diplomatic ties.
Market analysts said the meeting failed to produce any major breakthrough on the Iran issue, shifting investors’ attention back to geopolitical tensions and risks to oil shipments through the strategic waterway.
According to Vandana Hari of Vanda Insights, fears of renewed military escalation and possible disruption in the Strait of Hormuz continued to drive market sentiment.
During the summit, Trump also stated that China was interested in purchasing oil from the United States.
Tensions around the Strait of Hormuz remained high after reports that Iranian personnel seized a vessel near the United Arab Emirates on Thursday and directed it toward Iranian waters. In a separate incident, an Indian cargo ship transporting livestock from Africa to the UAE sank off the coast of Oman a day earlier.
The White House said both Trump and Xi agreed on the importance of ensuring uninterrupted shipping through the strategic route.
Iran’s Revolutionary Guards claimed that around 30 vessels had crossed the Strait of Hormuz since Wednesday evening.
Although the figure remained significantly below the pre-conflict daily average of about 140 ships, it indicated a partial recovery in maritime traffic.
Analysts said tight global oil supply continued to remain the key factor supporting higher prices, despite some easing of concerns after limited shipping activity resumed in the strait.
