Oil prices rise 1% as Middle East conflict continues Hormuz shipping disruption
Oil prices rose by 1% as geopolitical tensions in the Strait of Hormuz persist, with Iran considering legislation to restrict hostile vessels. Markets remain volatile due to conflicting signals regarding the duration of the regional conflict.
Why it matters
The Strait of Hormuz is a critical global energy chokepoint, and disruptions there have immediate impacts on global fuel prices and economic stability.
Oil prices inched higher on Friday as traders turned cautious due to uncertainty over shipping through the Strait of Hormuz alongside US President Donald Trump's recent remarks that the war could end "pretty soon."Around 7:25 am IST, Brent crude was trading 84 cents, or 1.02% higher, at $83.33 a barrel, while US West Texas Intermediate (WTI) crude was up 69 cents, or 0.89%, to $77.98 a barrel.The gains extended Thursday's rally, when crude settled more than $3 a barrel higher after Iran reviewed legislation aimed at preventing US and Israeli vessels from using the Strait of Hormuz. Before the war began at the end of February, the route carried around one-fifth of the world's oil and liquefied natural gas shipments.Trump said he believed the conflict involving Iran would come to an end soon, claiming that Tehran was unlikely to be able to continue fighting for much longer.
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