Oil prices rose about 2% on Friday after the US president’s remarksDonald Trump, and Iran’s foreign minister further dampened hopes of reaching an agreement to end the attacks and ship seizures in the Strait of Hormuz.
Brent crude futures rose US$2.50, or 2.4%, to US$108.22 a barrel. U.S. West Texas Intermediate futures, WIT, gained $2.86, or 2.4%, to $104.03.
Throughout the week, Brent has risen 6.8% and WTI 9.0% due to uncertainty over the fragile ceasefire in the conflict with Iran.
“The tone between the United States and Iran has once again become significantly more belligerent. Although the ceasefire holds, hopes for a quick reopening of the Strait of Hormuz have faded,” Commerzbank analysts note. Iran “does not trust” the United States and is only interested in negotiating with Washington if it is serious about talks, the foreign minister said Friday.Abbas Araqchi, who added that Iran is willing to return to the fight, but also to seek diplomatic solutions.
Trump stated that his patience with Iran was running out and that he had agreed with the Chinese presidentXi Jinping, that Iran cannot be allowed to possess a nuclear weapon and that it must reopen the Strait of Hormuz.
President Xi did not comment on his conversations with Trump about Iran, although China’s Foreign Ministry issued a statement. “This conflict, which should never have happened, has no reason to continue,” the ministry said.
Among the agreements that the market expected from the summit between the United States and China, Trump said that China wants to buy oil from the United States. Trump also said he could lift sanctions on Chinese companies that handle Iranian oil.
Iran’s Revolutionary Guard said 30 ships had crossed the Strait of Hormuz between Wednesday afternoon and Thursday, a figure still well below the usual 140 daily before the war, but which would represent a substantial increase if confirmed.
The maritime analysis company Kpler reported on Thursday that 10 ships had passed through the strait in the last 24 hours, compared to the five to seven who have crossed it daily in recent weeks.
