Hormuz Fears Send Oil Prices Higher Amid Ominous Strait Reopening Signs

Oil prices rose on Friday amid fresh worries over Iran's plans to block US and Israeli vessels from using the Strait of Hormuz in any deal with Oman.

The report, published by Fars news agency, said Iran would look to prevent US and Israeli ships from passing through the waterway as part of a deal with Oman. This development has dampened hopes for a full reopening of the strait, which is crucial for global oil and liquefied natural gas trade.

The Strait of Hormuz is a key chokepoint in global energy supplies, with about 20% of global oil passing through it. The news has caused crude prices to rise, with West Texas Intermediate (WTI) up 0.9% at $77.97 per barrel and Brent North Sea Crude up 1.2% at $83.46 per barrel.

Equity markets were mostly down on Friday, with the Dow Jones Industrial Average down 0.9% at 53,885.10. Analysts say the latest developments have traders questioning whether the week's early gains were justified.