Oil Prices Rise Despite Efforts to Boost Supply and Secure Strait of Hormuz

Oil prices rose on Friday despite efforts by the US and its allies to boost supply and secure safe passage through the Strait of Hormuz, a critical waterway that accounts for nearly 20% of global oil shipments.

The Brent futures price jumped $1.67 (1.5%) to $110.32 per barrel, while US West Texas Intermediate (WTI) crude added 33 cents (0.3%) to $96.47. For the week, benchmark Brent was on track to rise nearly 7%, while WTI was set to fall about 2% in its first weekly decline in five weeks.

US Treasury Secretary Scott Bessent said the US may soon remove sanctions from Iranian oil stranded on tankers and consider a further release of crude from the US Strategic Petroleum Reserve. This comes as leading European nations, Japan, Canada, and others offered to join efforts to secure safe passage for ships through the Strait of Hormuz.

A joint statement by Britain, France, Germany, Italy, the Netherlands, and Japan expressed their readiness to contribute to ensuring safe passage through the Strait. However, experts warn that reviving logistics fully may take an awfully long time, even if safe passage is negotiated.