Oil prices climbed in Asian trading on Friday, extending modest gains from the previous session while traders continued to monitor supply risks stemming from sustained disruptions in the Strait of Hormuz and an anticipated round of U.S.-Iran discussions this weekend.
As of 20:45 ET (00:45 GMT), Brent futures for June delivery were up 0.8% at $96.70 per barrel, and West Texas Intermediate futures gained 0.7% to $98.52 per barrel. Both contracts had settled higher on Thursday after trimming some earlier gains, yet were still positioned to record more than 10% losses for the week.
Market support came from continued interruptions to oil flows through the Strait of Hormuz, a critical channel for global shipments. Earlier in the week, crude prices had plunged following an announcement from U.S. President Donald Trump of a two-week ceasefire with Iran that was conditional on reopening the strait, prompting hopes that previously disrupted shipments might resume. Within hours of that announcement, Israel launched heavy airstrikes on Lebanon, stating its conflict with Hezbollah was not covered under the truce.
Following those strikes, Iran moved to halt tanker traffic through the Strait of Hormuz again, citing Israel's actions as a breach of the ceasefire. Israel said it would begin direct negotiations with Lebanon as soon as possible, suggesting a potential diplomatic opening, but markets remained sensitive to further developments.
Investor caution increased ahead of planned U.S.-Iran talks this weekend, with sentiment vulnerable to any headlines that might indicate whether the fragile ceasefire will hold or further escalate. President Trump intensified public comments aimed at Tehran, warning it against charging fees for vessels transiting the Strait of Hormuz and criticizing Iran for doing a "poor job" of allowing energy supplies to flow.
Physical tanker movements through the strait continue to be heavily constrained. Market participants have cited a reported backlog of vessels and limited insurance coverage as factors that are further slowing any recovery in flows.
The combination of constrained physical shipments and heightened geopolitical rhetoric has left oil markets in a state of heightened sensitivity, with prices reacting to incremental shifts in diplomatic signals while still reflecting substantial weekly declines.