Oil prices climb as Strait of Hormuz concerns return
Oil prices extended their gains on Friday as renewed uncertainty over shipping through the Strait of Hormuz fueled concerns about global energy supplies, Qazinform News Agency correspondent reports.
Brent crude futures rose nearly 1% to trade above $83 per barrel, while U.S. West Texas Intermediate (WTI) crude gained around 1%, approaching $78 per barrel in early trading.
The latest increase followed a sharp rally on Thursday, when both benchmarks climbed by more than $3 a barrel after reports that Iran is considering new restrictions on vessel traffic through the Strait of Hormuz.
Market sentiment shifted after Iranian media reported that a draft proposal under review by lawmakers would ban U.S. and Israeli vessels from using the strategic waterway and impose significant penalties on ships that violate the proposed rules.
Oil prices had fallen earlier this week on hopes that diplomatic efforts could lead to a broader agreement to restore normal shipping through the strait. However, the latest developments have renewed concerns that any future arrangement could still include restrictions, raising the risk of supply disruptions.
Earlier, Qazinform News Agency reported that oil tumbled 4% and hit a three-week low.