Brent crude futures rose by $1.23 or 1.23 per cent to $101.29 per barrel on Friday as the market weighed the aftermath of the US and Iran trading air strikes, while shipping in the Strait of Hormuz remained largely shut.
Also, the US West Texas Intermediate (WTI) crude futures went up by 61 cents of 0.64 per cent to $95.42 a barrel, as American and Iranian forces clashed in the Gulf, with the United Arab Emirates (UAE) coming under renewed attack amid wait for a response from Iran by the US to its proposal to end the conflict, which began with joint US-Israeli airstrikes across Iran on February 28.
US President Donald Trump, later on Thursday, told reporters the ceasefire was still in effect and sought to play down the exchange.
However, on Friday, President Trump renewed an ultimatum demanding Iran give up its nuclear ambitions.
Analysts say the oil market is stuck between hopes for a diplomatic breakthrough between the US and Iran and fears of renewed conflict. Some noted that traders expect either progress in negotiations or another escalation in fighting, keeping prices unstable as markets wait for a clearer direction.
However, they added that oil prices are currently reacting heavily to headlines rather than market fundamentals. While tensions remain high, oil shipments through the Persian Gulf have not faced major disruptions, leaving traders cautiously optimistic but uncertain.
Meanwhile, the US Commodity Futures Trading Commission is investigating oil price trades totalling $7 billion placed shortly ahead of key Iran war-related announcements by President Trump.
US forces struck two empty Iranian-flagged oil tankers in the Gulf of Oman on Friday. US Central Command (CENTCOM) said the vessels were attempting to violate the American naval blockade around Iranian ports.
According to CENTCOM, fighter aircraft disabled both tankers by firing precision munitions into their smokestacks. A third Iranian-flagged vessel had already been disabled earlier this week.
