Brent Crude Surges on Uncertainty Over Strait of Hormuz Negotiations

Ongoing uncertainty over negotiations to control the Strait of Hormuz has driven up Brent crude oil prices by more than $1 per barrel. The Strait, a key shipping artery through which about one-fifth of the world's oil and liquefied natural gas passes, has been affected by the Iran-U.S. conflict that began in late February.

On Friday, Brent futures settled at $83.55 a barrel, gaining 1.06 or 1.3%. West Texas Intermediate (WTI) futures finished at $78.18 a barrel, up 89 cents or 1.15%.

The market remains uncertain about what needs to happen for an agreement to be clinched, according to Vandana Hari, founder of Vanda Insights.

Analysts said that the proposed deal between Iran and Oman is not easily workable due to U.S. sanctions and restrictive insurance clauses on any payments.