Strait of Hormuz Uncertainty Sends Brent Crude Prices Soaring

Brent crude oil prices surged by over $1 per barrel on Friday as uncertainty surrounding the Strait of Hormuz's control and reopening continues. The key global shipping artery is a crucial route for oil exports, and its closure could lead to supply disruptions and price volatility.

The Brent crude futures settled at $83.55 a barrel, while US West Texas Intermediate (WTI) crude finished at $78.18 a barrel. For the week, Brent fell 7.3 percent, while WTI dropped 7.7 percent.

Iran and Oman have reportedly agreed on a route for ships to navigate through the strait, but it is unclear whether the US will accept these terms. Iran seeks fees of between 5-7 percent of cargo prices from ships using the strait, while Oman proposes fees of around 3 percent. The US wants no fees at all.

Meanwhile, Asia LNG prices slipped due to limited buying interest, but held near a four-month high. The average LNG price for September delivery into northeast Asia was $20.40 per million British thermal units, down from $21.35 per mmBtu the week before.