Oil prices extended gains on Friday after Iran, working with Oman, suggested new rules for the Strait of Hormuz that could restrict vessels considered hostile, raising fresh concerns over global energy supplies even as US President Donald Trump expressed optimism that the conflict with Iran could end soon.
Brent crude futures rose 99 cents, or 1.2 per cent, to USD 83.48 a barrel, while US West Texas Intermediate (WTI) crude gained 85 cents, or 1.1 per cent, to USD 78.84 by 0010 GMT. The recovery comes after a sharp weekly decline, with Brent down about 12 per cent and WTI falling around 11 per cent over the past week.
The gains followed a sharp rally on Thursday, when both benchmarks settled more than USD 3 a barrel higher after Iran reviewed a bill that could ban US and Israeli vessels from using the Strait of Hormuz. The proposed measure also includes heavy fines for ships that violate the rules.
The Strait of Hormuz is one of the world’s most important energy trade routes, with around one-fifth of global oil and liquefied natural gas shipments passing through it before the conflict began at the end of February.
Oil remains lower over the past week
Oil prices had declined earlier this week on expectations that the conflict could move towards a resolution. Brent crude even slipped below the USD 80-a-barrel mark for the first time since July 13 before rebounding above the level on Thursday.
Despite the recent recovery, Brent crude has declined around 12 per cent over the past week, while WTI crude has fallen about 11 per cent during the same period.
Trump sees hope for early end to conflict
US President Donald Trump on Thursday said he believed the conflict involving Iran could end “pretty soon” and expressed confidence that the Islamic Republic “can’t go much longer.”
Speaking to reporters at the Oval Office, Trump reiterated that the United States would not allow Iran to acquire a nuclear weapon and said he remained optimistic about negotiations related to the Strait of Hormuz.
Trump said the US Navy continued to oversee the blockade in the region but acknowledged that threats such as sea mines could disrupt shipping activity. He added that negotiations were progressing and an agreement could come soon.
US Vice President JD Vance also acknowledged that discussions with Tehran were likely to be “messy” and could take time because of differences within Iran’s leadership.
Vance said the Trump administration would continue using military, economic and diplomatic measures to achieve its objectives while ensuring Iran does not obtain nuclear weapons.
Iran rejects US claims, warns of strong response
However, Iranian officials maintained a firm stance. Iran’s Acting Defence Minister Brigadier General Seyed Majid Ibn Reza said the country’s armed forces were fully prepared to respond to any threat from the United States or Israel.
He said Iran’s military, backed by the country’s domestic defence industry, was ready to deliver a “crushing and decisive response” if required.
Meanwhile, Iran’s Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf rejected US claims of progress in negotiations, accusing Washington of pursuing “theatre diplomacy.”
In a post on social media platform X, Ghalibaf criticised what he described as US pressure tactics and said Iran would not respond to “bullying, broken promises and fake news.”
Pezeshkian highlights resilience amid conflict
Separately, Iranian President Masoud Pezeshkian said the country had managed the ongoing conflict effectively through coordinated governance and cooperation with neighbouring countries.
In a televised address, Pezeshkian said attacks on key infrastructure, including power facilities, had not significantly disrupted daily life for ordinary citizens. He also said relations with neighbouring countries had improved and credited regional cooperation with preventing attempts to create instability along Iran’s borders during the conflict.
Pezeshkian added that Iran’s government remained focused on infrastructure development, including plans to expand Tehran’s metro network to surrounding cities.
The latest developments come amid continued uncertainty over US-Iran diplomacy after the collapse of the memorandum of understanding signed in June to halt hostilities.
