Oil Prices Rebound Amid Strait of Hormuz Concerns and Job Losses
Oil prices reversed course on Friday to rise by 1.02% and 1.15% for Brent crude and West Texas Intermediate futures, respectively, amidst concerns over the Strait of Hormuz reopening plans.
The climb follows a Thursday settlement that saw oil futures increase by more than $3 per barrel as Iran reviewed a bill to ban US and Israeli vessels from the vital shipping route.
However, hopes for a solution to the conflict seemed to fade as negotiators faced challenges in reaching an agreement due to US sanctions and restrictive insurance clauses.
The U.S. economy lost 23,000 jobs in July, which analysts say reduces the likelihood of Federal Reserve intervention to raise interest rates, thereby increasing purchasing power and potentially driving down oil prices.