Crude oil markets experienced significant gains exceeding 1% after President Donald Trump warned his patience with Iran is running short, while shipping concerns continue in the vital Strait of Hormuz waterway.
Brent crude futures climbed $1.32, representing a 1.25% increase to reach $107.04 per barrel by 0425 GMT. Meanwhile, U.S. West Texas Intermediate futures advanced $1.33, or 1.31%, settling at $102.50.
Weekly performance showed strong momentum, with Brent advancing nearly 6% and WTI surging more than 7%, driven by uncertainty surrounding the fragile ceasefire in the Iran conflict.
In a Thursday evening Fox News interview, Trump declared: “I am not going to be much more patient. They should make a deal.”
During a Friday morning Bloomberg interview, U.S. Trade Representative Jamieson Greer noted China’s pragmatic approach regarding Iran involvement, emphasizing China’s interest in maintaining open access through the Strait of Hormuz.
President Trump and China’s President Xi Jinping were scheduled to meet Friday, concluding a two-day state visit marked by ceremonial events and business agreements.
Vandana Hari, founder of oil market analysis provider Vanda Insights, explained: “With the Beijing summit not delivering any breakthrough on Iran, market focus is back on the deadlock and a blockaded Strait, with a tail risk of renewed military escalation.”
Regarding potential deals from the summit, Trump indicated China’s interest in purchasing American oil.
Recent shipping incidents near the Strait of Hormuz included Iranian personnel reportedly seizing a vessel off the United Arab Emirates and directing it toward Iranian waters Thursday. Additionally, an Indian cargo ship transporting livestock from Africa to the UAE sank Wednesday in waters near Oman’s coast.
The White House reported that Trump and Xi reached agreement on maintaining open shipping lanes.
Iran’s Revolutionary Guards reported 30 vessels crossed the Strait of Hormuz since Wednesday evening. While this represents a notable increase if verified, it remains well below the typical pre-war daily traffic of 140 ships.
Haitong Futures analyst Yang An identified supply constraints as the primary oil price driver.
“Oil prices swung several times yesterday but still closed near the day’s high,” he noted.
“Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply.”
