Crude oil prices moved higher on Friday as uncertainty surrounding negotiations over the reopening of the Strait of Hormuz continued to support a geopolitical risk premium. Brent crude settled up $1.06, or 1.3%, at $83.55 per barrel, while WTI gained $0.89, or 1.15%, to settle at $78.18 per barrel.
Market participants remained focused on ongoing discussions involving Iran, Oman, and the United States regarding future transit through the Strait of Hormuz. While reports indicated progress on a proposed shipping framework, significant disagreements remain over vessel access, transit fees, and the role Iran would play in managing one of the world’s most important energy chokepoints.
Analysts noted that uncertainty surrounding the negotiations continues to fuel price volatility, as traders weigh the potential for an eventual restoration of normal shipping against the risk of prolonged disruptions. Before the conflict began in late February, roughly one-fifth of global oil and liquefied natural gas shipments passed through the Strait of Hormuz.
Concerns over tightening global crude supplies also persisted as commercial inventories continue to decline amid reduced exports from the Gulf region. With no final agreement in place and geopolitical tensions remaining elevated, energy markets continue to closely monitor developments for signs of either further escalation or a lasting resolution.