Hormuz Deal Hopes Fuel Oil Price Surge

The Strait of Hormuz, which carries about a fifth of the world's energy supplies, remains a source of uncertainty for oil prices. Iranian Foreign Minister Abbas Araghchi stated that Tehran is not in direct negotiations with Washington, but rather exchanging messages through intermediaries.

Araghchi clarified that an agreement with Oman alone would not reopen the Strait to all traffic. The two countries have been discussing a navigation deal where incoming ships use Iranian waters and outgoing ships use Omani waters.

The Supreme National Security Council has outlined conditions for any deal, including lifting the naval blockade and sanctions, removing U.S. troops, paying war reparations, releasing frozen Iranian assets, stopping attacks on regional allies, and ceasing threats against Iran. Treasury Secretary Scott Bessent told CNBC that a deal could be reached as soon as Wednesday.

Oil prices rose Friday as traders waited for a breakthrough. Brent crude gained over 1% to settle at $83.55 a barrel, while West Texas Intermediate rose about 1% to $78.18. However, the current traffic in the Strait is down 33% from Thursday, with most ships taking the Iranian side.