Oil Prices Rise as Iran Conflict Remains Unresolved
Oil prices moved higher on Friday as diplomatic efforts to resolve the Iran conflict showed little progress. Tensions remained elevated, with Tehran continuing to block the Strait of Hormuz, while the U.S. Navy maintained restrictions on Iranian crude exports.
Brent and WTI Extend Gains
Brent crude futures for July climbed $1.04 (0.94%) to $111.44 per barrel, while West Texas Intermediate (WTI) rose 41 cents (0.39%) to $105.48 per barrel in early trading.
Both major benchmarks have now recorded four consecutive months of gains, highlighting sustained upward momentum in global oil markets.
Oil Hits Multi-Year Highs
Brent’s June contract, which expired on Thursday, surged to $126.41 per barrel, marking its highest level since March 2022. The rally reflects persistent supply concerns driven by geopolitical tensions.
Supply Disruptions Drive Price Surge
Oil prices have been rising steadily since late February, when military action involving the U.S. and Israel against Iran triggered major disruptions. The closure of the Strait of Hormuz—a key global shipping route—has impacted roughly one-fifth of the world’s oil and liquefied natural gas supply.
In March alone, Brent crude recorded a sharp 50% increase, underscoring the scale of the supply shock.
Ceasefire Holds, But Talks Stall
Although a ceasefire has been in place since April 8, progress in diplomatic negotiations remains slow. Iranian Foreign Ministry spokesperson Esmaeil Baghaei indicated that expecting a quick resolution from talks with the U.S. is unrealistic, according to state media reports.
Escalation Risks Keep Markets on Edge
Geopolitical risks continue to drive volatility in oil markets. A senior official from Iran’s Revolutionary Guards warned of “long and painful strikes” against U.S. targets if hostilities resume, briefly pushing oil prices to intraday highs before a pullback.
Meanwhile, Donald Trump is expected to review new military plans aimed at pressuring Iran into negotiations, further fueling uncertainty in global energy markets.
