Oil Edges Higher as Hormuz Disruptions and Ceasefire Doubts Keep Markets Tense

Oil prices rose modestly in Asian trading on Friday, extending gains from the previous session as investors weighed persistent supply risks in the Middle East ahead of expected U.S.-Iran talks.

Brent crude futures for June climbed 0.9% to $96.74 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.7% to $98.54 per barrel. Despite the rebound, both benchmarks remain on track for weekly losses exceeding 10% after a sharp sell-off earlier in the week.

Prices continue to draw support from disruptions in the Strait of Hormuz, a critical route for global oil shipments. Iran has again halted tanker traffic through the strait, raising concerns over global supply flows.

Earlier optimism had weighed on prices after Donald Trump announced a two-week ceasefire with Iran, contingent on reopening the strait. However, the agreement quickly came under pressure after Israel launched heavy airstrikes on Lebanon, arguing that its operations against Hezbollah were not covered under the deal.

In response, Iran moved to block tanker traffic once more, citing Israeli actions as a violation of the ceasefire. At the same time, Israel signaled a potential diplomatic opening, stating it would begin direct negotiations with Lebanon soon.

Investor sentiment remains cautious ahead of planned U.S.-Iran talks this weekend. Uncertainty deepened after Iranian media denied reports that a delegation had arrived in Islamabad for negotiations, stating that talks would remain suspended unless ceasefire commitments—particularly regarding Lebanon—are upheld.

Adding to tensions, President Donald Trump intensified rhetoric against Tehran, warning it against imposing fees on vessels passing through Hormuz and criticizing Iran’s handling of energy flows.

With geopolitical risks still elevated and the ceasefire increasingly fragile, oil markets are likely to remain highly sensitive to incoming developments in the near term.