Hormuz Tensions Fuel Oil Price Rally Amid Ongoing Middle East Conflict

Oil prices rose on Friday as traders remained cautious about uncertainty surrounding shipping through the Strait of Hormuz and the ongoing Middle East conflict. The Brent crude price increased by $0.84, or 1.02%, to reach $83.33 per barrel, while US West Texas Intermediate crude gained $0.69, or 0.89%, to trade at $77.98 per barrel.

The price increase extended the rally from Thursday, when oil prices settled more than $3 higher after Iran reviewed legislation aimed at preventing US and Israeli vessels from using the Strait of Hormuz. The route carries around one-fifth of global liquefied natural gas shipments, making it a crucial point for trade in the region.

US President Donald Trump stated that he expected the conflict involving Iran to end soon, but tensions remain high as Iran continues to pursue measures targeting vessels it considers hostile. Tehran and Oman are also discussing new transit proposals, which could further complicate the situation.