Oil prices climbed more than 1 percent on Friday as investors reacted to fresh warnings from US President Donald Trump toward Iran and ongoing security concerns in the Strait of Hormuz despite signs of limited shipping activity returning to the key energy corridor.
Brent crude futures rose $1.32, or 1.25 percent, to $107.04 a barrel by early trading in Saudi Arabia, while US West Texas Intermediate crude gained $1.33, or 1.31 percent, to reach $102.50 a barrel.
The gains added to a volatile week for energy markets. Brent has risen nearly 6 percent over the week, while WTI has advanced more than 7 percent as traders continue to monitor the fragile ceasefire surrounding the Iran conflict and the disruption to global oil supplies.
Market sentiment was further affected after Trump signaled frustration with stalled negotiations involving Tehran.
“I am not going to be much more patient,” Trump said during an interview aired Thursday on Fox News. “They should make a deal.”
The comments came as Trump wrapped up a high-profile two-day visit to Beijing, where he met Chinese President Xi Jinping for talks focused on trade, regional security and the ongoing conflict involving Iran.
US Trade Representative Jamieson Greer said China was taking a “pragmatic” approach toward Iran and shared an interest in keeping the Strait of Hormuz open to international shipping. The waterway is one of the world’s most important oil transit routes and has faced severe disruption since fighting escalated earlier this year.
The White House said Trump and Xi agreed during their discussions on the importance of maintaining freedom of navigation through the strait.
Despite reports from Iran’s Revolutionary Guards that around 30 vessels had crossed the strait since Wednesday evening, shipping activity remains far below normal levels. Before the conflict, roughly 140 ships moved through the passage daily.
Fresh maritime incidents have continued to raise concerns across global markets. A vessel anchored near the UAE was reportedly seized by Iranian personnel on Thursday and redirected toward Iranian waters. A day earlier, an Indian cargo ship transporting livestock from Africa to the UAE sank off the coast of Oman after what security analysts described as a likely missile or drone strike.
Analysts said the market remained focused on the risk of renewed military escalation and the continuing impact on energy supplies.
“With the Beijing summit not delivering any breakthrough on Iran, market focus is back on the deadlock and a blockaded Strait,” said Vandana Hari, founder of Vanda Insights.
Yang An, an analyst at Haitong Futures, said tight supply conditions remained the key factor supporting higher prices.
“Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply,” he said.
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