Brent crude settled up $1.23, or 1.2%, at $101.29 per barrel after earlier surging as much as 3% during the session. U.S. West Texas Intermediate (WTI) crude rose 61 cents, or 0.6%, to close at $95.42 per barrel. Despite Friday’s gains, both benchmarks still posted weekly declines of more than 6%.
Markets remained highly reactive to geopolitical headlines following direct exchanges of air strikes between U.S. and Iranian forces on Thursday, along with renewed attacks targeting the UAE. The fighting reinforced concerns about continued disruptions around the Strait of Hormuz, where shipping activity remains severely constrained.
At the same time, traders appeared increasingly focused on the possibility of a temporary diplomatic breakthrough. Market sentiment was supported by expectations that current negotiations could evolve into a broader 30-day framework for continued talks between Washington and Tehran, even as both sides continued to exchange threats and military pressure.
The result was another highly volatile session driven primarily by shifting headlines rather than underlying fundamentals. Oil prices initially spiked sharply on fears of escalation before trimming gains as optimism surrounding negotiations resurfaced later in the day.
Supply concerns nevertheless remain elevated. Shipping through the Strait of Hormuz continues to operate well below normal levels, limiting the flow of crude and refined products through one of the world’s most important energy chokepoints. Markets are also beginning to focus on how quickly Gulf producers could restore exports, the condition of global inventories heading into peak summer fuel demand, and what future sanctions policy may look like if a settlement is eventually reached.