Oil prices climbed more than 1% on Friday as fresh geopolitical tensions in the Gulf combined with signals of potential demand from China to keep markets on edge.
Brent crude rose to $106.89 a barrel, while U.S. West Texas Intermediate (WTI) climbed to $102.27, extending a volatile week driven largely by uncertainty around the Strait of Hormuz, a critical artery for global energy supply.
Comments from Donald Trump helped lift sentiment after he said China was interested in purchasing U.S. oil, hinting at stronger demand from the world’s second-largest economy. Trump also struck a firmer tone on Iran, saying he would not remain patient for long as he pushed Tehran toward a deal with Washington.
At the same time, security concerns in the Gulf remain far from resolved. A vessel was reportedly seized by Iranian forces near the United Arab Emirates, while another cargo ship was sunk off the coast of Oman, underscoring the persistent risks facing maritime traffic in the region.
Iran said around 30 vessels had passed through the Strait of Hormuz in recent hours, a notable increase but still well below the roughly 140 daily crossings typical before the conflict. The shortfall continues to feed concerns about constrained supply.
Markets are closely watching diplomatic signals as Trump prepares to conclude talks with Xi Jinping, where maintaining open shipping lanes through the strait has emerged as a shared priority.
Analysts say supply dynamics remain the dominant force behind price movements. While the resumption of some shipping traffic has eased immediate fears, it has not been enough to offset broader concerns about disruptions and tight global supply.
The result is a market caught between cautious optimism and underlying fragility, where every geopolitical development continues to ripple quickly through oil prices.
