Summary
- Brent and WTI set for hefty weekly gains
- China wants to buy US oil, Trump says
- More vessels have been crossing Strait of Hormuz
- Ship attacks and seizures remain a worry
LONDON, May 15 (Reuters) – Oil prices gained more than 3% on Friday after U.S. President Donald Trump said his patience with Iran is running out, adding to concerns over the lack of progress on a peace deal to end ship attacks and seizures around the Strait of Hormuz.
Brent crude futures gained $3.47, or 3.3%, to $109.19 a barrel by 0925 GMT. U.S. West Texas Intermediate futures were up $3.72, or 3.7%, at $104.89.
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After talks with Chinese President Xi Jinping, Trump said they agreed that Iran cannot be allowed to have a nuclear weapon and must reopen the Strait of Hormuz, adding that he is losing patience with Tehran.
“Market focus is back on the deadlock and a blockaded Strait of Hormuz, with a tail risk of renewed military escalation,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
President Xi did not comment on his discussions with Trump about Iran, though China’s foreign ministry issued a statement. “This conflict, which should never have happened, has no reason to continue,” the ministry said.
Among deals the market was looking for from the summit, Trump said China wants to buy oil from the United States.
Iran’s Revolutionary Guards said that 30 vessels had crossed the Strait of Hormuz between Wednesday evening and Thursday, still far short of the 140 a day that was typical before the war, but a substantial increase if confirmed.
“An increasing number of vessels are filtering through the Strait … although currently this has a more tangible impact on sentiment than on the actual oil balance,” said PVM analyst Tamas Varga.
Shipping analytics firm Kpler said on Thursday that 10 ships had sailed through the strait in the past 24 hours, compared with the five to seven that have crossed daily in recent weeks.
Reporting by Robert Harvey in London, Mohi Narayan in New Delhi and Sam Li in Beijing Editing by David Goodman
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