Hormuz Tensions Spark Oil Price Rally Amid Global Supply Concerns

Oil prices rose for a second consecutive day on Friday due to fresh security concerns in the Strait of Hormuz, which has raised fears about potential disruptions to global energy supplies.

The Strait of Hormuz is one of the world's most critical oil transit routes, carrying about one-fifth of the world's oil shipments. Reports of Iran attacking what it described as 'hostile targets' in the area have heightened concerns over future oil exports from the Gulf.

Markets were also assessing the implications of a proposed Iran-Oman agreement governing navigation through the Strait of Hormuz. The draft proposal, currently under review by Iran's parliament, outlines significantly tougher conditions for commercial shipping than markets had anticipated.

The US Dollar Index edged up to 99.8 on Thursday but remained close to a seven-week low as investors balanced geopolitical developments with expectations ahead of the closely watched US nonfarm payrolls report.