Hormuz Deal Hopes Dampened as Oil Prices Rise Amid Inflation Fears

Oil prices rose on Friday as concerns over a deal to reopen the Strait of Hormuz led to renewed fears of a fresh spike in inflation. The Brent North Sea Crude price was up 1.2% at $83.46, while US West Texas Intermediate crude was at $77.97 a barrel, up 0.9%. This follows reports that Iran is planning to block US and Israeli ships from the waterway as part of a deal with Oman.

Markets had enjoyed a healthy run-up earlier in the week after US President Donald Trump called off strikes on Iran and said an agreement was close. However, Tehran denied talks had taken place, casting doubt on the optimism.

The latest developments have traders questioning whether the early gains were justified, with analysts saying that a number of factors are still uncertain, including key US jobs data due to be released later in the day.