Oil prices rose more than 1% on Friday, with Brent crude climbing above $90 a barrel and U.S. West Texas Intermediate nearing $85, as traders monitored disruptions to tanker movements through the Strait of Hormuz.
The gains kept both benchmarks on course for strong monthly advances, with Brent set to gain about 23% in July and WTI around 22%, reflecting heightened geopolitical tensions in the Middle East.
Market sentiment strengthened after Iranian media reported that the Revolutionary Guards halted two tankers in the Strait of Hormuz while four others altered their routes, raising fresh concerns over oil supply flows.
Despite the disruptions, ship-tracking data showed that two very large crude carriers carrying Gulf crude successfully exited the strait on Friday, although overall vessel traffic remained below normal levels.
Analysts said investors have shifted their focus from the broader conflict to real-time shipping data, as any prolonged disruption to key maritime routes could tighten global crude supplies.
Negotiations between Iran and Oman over the management of the Strait of Hormuz are continuing, even after Tehran rejected Oman’s proposal for joint oversight of the strategic waterway.
Saudi Arabia is also seeking to strengthen regional security by leading efforts to improve defence cooperation across the Bab el-Mandeb Strait, the Red Sea and the Gulf of Aden.
Geopolitical risks intensified further after a drone strike triggered fires on two gas vessels at Egypt’s Mediterranean port of Damietta, raising concerns over the security of shipping linked to the Suez Canal.
The Strait of Hormuz and the Bab el-Mandeb remain among the world’s most critical energy chokepoints, and continued disruptions could have significant implications for global oil exports and energy markets.
Traders are expected to keep closely watching tanker movements and regional security developments, with shipping flows likely to remain the key driver of oil prices in the near term.