Oil prices finished higher on Friday as Hurricane Isaias continued to threaten U.S. Gulf Coast energy production, offsetting pressure from renewed optimism surrounding potential negotiations between the U.S. and Iran. Prices fluctuated throughout the session as traders weighed the possibility of easing geopolitical tensions against ongoing supply disruptions.

Brent crude futures rose 44 cents, or 0.42%, to settle at $104.72 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 36 cents, or 0.39%, to settle at $91.85 a barrel.

Comments from President Trump regarding progress in discussions with Iran initially pressured crude prices. Trump also indicated that an announcement concerning diesel was forthcoming and said he was considering suspending the federal gasoline tax. However, uncertainty surrounding the conflict and continued risks to oil shipments limited the market’s reaction. Both Brent and WTI were positioned to finish the week higher.

The Strait of Hormuz remains a major concern for energy markets, as the waterway normally handles approximately 20% of global oil and fuel shipments. Although diplomatic efforts could eventually ease restrictions on shipping, the U.S. continues to impose economic sanctions on Iran, and the potential for further disruptions remains elevated.

Additional pressure on refined fuel markets could come from China, the world’s largest oil importer, which plans to resume refined fuel exports following a brief suspension during its Golden Week holiday. Meanwhile, the ongoing conflicts involving Iran and Russia and Ukraine continue to disrupt supplies of gasoline, jet fuel and diesel, keeping global fuel markets tight.

Hurricane Isaias is providing further support to crude prices as energy companies reduce offshore operations in the Gulf of Mexico. Approximately 1.3 million barrels per day of U.S. Gulf crude production had been shut in as of Thursday, representing 62.9% of current output. Further production losses could add upward pressure to prices if the storm continues to disrupt offshore operations and energy infrastructure.