Summary
- Brent crude and WTI on track for strong weekly gains
- UAE’s Gargash says unilateral Iranian arrangements for Hormuz can’t be trusted
- Iran threatens painful response if U.S. renews attacks
(Reuters) – Oil prices steadied but remained on track for weekly gains on Friday as efforts to halt the Iran war remained at an impasse, with Tehran still blocking the Strait of Hormuz and the U.S. Navy blocking exports of Iranian crude.
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Brent crude futures for July were up 53 cents, or 0.5%, at $110.93 a barrel by 1124 GMT. West Texas Intermediate futures dropped 56 cents, or 0.5%, to $104.51.
The Brent benchmark was poised for a 5.2% gain over the week while WTI was on track to finish the week up 10.5%. Brent’s June contract hit $126.41 a barrel on Thursday, marking the highest level since March 2022, before ending the session down.
“Thursday’s sharp reversal underscores a market that is taking the stairs up but risks the elevator down on any sudden easing headline, making conditions exceptionally challenging for traders,” said Ole Hansen at Saxo Bank.
Oil prices have been on the rise since the U.S. and Israel attacked Iran at the end of February, resulting in the closure of the Strait of Hormuz and disruption of shipments of about a fifth of the world’s oil and liquefied natural gas supply.
“The path of least resistance for crude oil prices remains upward as long as flows through the strait are restricted,” said UBS analyst Giovanni Staunovo, adding that oil inventories are falling quickly because of an undersupplied market.
A ceasefire has been in place since April 8, but on Thursday evening Iranian Foreign Ministry spokesman Esmaeil Baghaei said it was unreasonable to expect quick results from U.S. talks, the official IRNA news agency reported.
UAE presidential adviser Anwar Gargash said on Friday in a post on X that no unilateral Iranian arrangements can be trusted or relied upon regarding freedom of navigation through the Strait of Hormuz after its “treacherous aggression” against its neighbours.
A senior official of Iran’s Revolutionary Guards had threatened on Thursday “long and painful strikes” on U.S. positions if Washington renewed attacks on Iran, pushing oil prices to intraday peaks before retreating.
U.S. President Donald Trump was scheduled to receive a briefing on Thursday on plans for a series of fresh military strikes on Iran to compel it to negotiate an end to the conflict, a U.S. official told Reuters.
Reporting by Stephanie Kelly in London and Helen Clark in Melbourne Editing by David Goodman
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