Oil prices climbed more than 1 percent on Friday after U.S. President Donald Trump stated he would not remain patient with Iran for much longer, while concerns over ship attacks and seizures in the Strait of Hormuz continued to unsettle markets. Tehran reported that approximately 30 vessels had successfully navigated the strait, but the number remains far below the typical daily traffic before the conflict.
Market Movements
Brent crude oil futures increased by $1.32, or 1.25 percent, reaching $107.04 per barrel by 7:25 a.m. Saudi time. Meanwhile, U.S. West Texas Intermediate (WTI) futures rose by $1.33, or 1.31 percent, to $102.50 per barrel. On a weekly basis, Brent has surged nearly 6 percent, while WTI has jumped more than 7 percent, driven by uncertainty over the fragile ceasefire in the Iran conflict.
Trump's Remarks
In an interview aired Thursday night on Fox News, Trump said, “I am not going to be much more patient. They should make a deal.” The comments added to the geopolitical risk premium in oil markets.
US-China Summit
U.S. Trade Representative Jamieson Greer noted on Friday morning that China was being very pragmatic regarding involvement with Iran and that keeping the Strait of Hormuz open was important to Beijing, in an interview with Bloomberg. Trump and Chinese President Xi Jinping are scheduled to meet on Friday to conclude a two-day state visit that has featured diplomatic ceremonies and business agreements.
According to Vandana Hari, founder of oil market analysis provider Vanda Insights, “With the Beijing summit not delivering any breakthrough on Iran, market focus is back on the deadlock and a blockaded Strait, with a tail risk of renewed military escalation.” Among the deals anticipated from the summit, Trump indicated that China wants to purchase oil from the United States.
Strait of Hormuz Incidents
In recent incidents near the Strait of Hormuz, a ship was reportedly seized by Iranian personnel off the coast of the United Arab Emirates and taken toward Iranian waters on Thursday. Additionally, an Indian cargo vessel carrying livestock from Africa to the UAE was sunk on Wednesday in waters off Oman. The White House stated that Trump and Xi agreed on the necessity of keeping the shipping lane open.
Iran’s Revolutionary Guards announced that 30 vessels had crossed the Strait of Hormuz since Wednesday evening, a significant increase if confirmed, though still far short of the 140 ships that typically passed daily before the war.
Analyst Views
Yang An, analyst at Haitong Futures, highlighted that the main driver of oil prices remains tight supply. “Oil prices swung several times yesterday but still closed near the day’s high,” he said. “Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply.”
