BY COMFORT OGBONNA
Oil prices rose more than 1% as renewed geopolitical tensions and supply disruption fears gripped global energy markets, with traders closely watching developments around Iran and the strategic Strait of Hormuz, one of the world’s most critical shipping routes.
The rally came after comments from U.S. President Donald Trump, who said he would not remain “much more patient” with Iran and urged Tehran to reach an agreement amid escalating regional uncertainty. His remarks added fresh pressure to already fragile market sentiment, where concerns about ship seizures and attacks in the region continue to dominate investor attention.
Brent crude futures climbed $1.32, or 1.25%, to $107.04 per barrel by 0425 GMT, while U.S. West Texas Intermediate (WTI) rose $1.33, or 1.31%, to $102.50 per barrel. For the week, Brent has surged nearly 6%, while WTI has jumped more than 7%, reflecting heightened anxiety over supply stability and geopolitical risk.
The recent gains come as markets react to ongoing uncertainty surrounding a shaky ceasefire linked to the Iran conflict, with traders increasingly worried that any breakdown could trigger further disruptions in global oil flows. Energy markets, already sensitive to supply constraints, have become especially reactive to developments in the Middle East.
Adding to the diplomatic tension, Trump reiterated his hardline stance in a televised interview, stating that Iran “should make a deal,” further reinforcing the likelihood that negotiations remain stalled. At the same time, U.S. Trade Representative Jamieson Greer said China was taking a pragmatic approach to Iran-related issues and emphasized that keeping the Strait of Hormuz open remains critical to global energy security.
Attention is also focused on high-level diplomacy between Washington and Beijing, as Trump and Chinese President Xi Jinping concluded a two-day state visit marked by economic discussions and symbolic engagements. While expectations were high for breakthroughs on energy and security cooperation, no major agreement on Iran emerged, leaving markets still exposed to geopolitical uncertainty.
According to market analyst Vandana Hari of Vanda Insights, the absence of progress from the Beijing summit has shifted attention back to unresolved tensions and the risk of disruption in the Strait of Hormuz. She warned that the situation continues to carry a “tail risk of renewed military escalation,” which could further destabilize oil markets.
The Strait of Hormuz remains at the center of global supply concerns. Iranian authorities reported that about 30 vessels had passed through the waterway since Wednesday evening, a slight improvement but still far below the roughly 140 ships that typically transited daily before the conflict escalation. Despite the partial recovery in traffic, shipping activity remains significantly constrained compared to normal levels.
Recent incidents have heightened these fears. Reports emerged of a vessel seized by Iranian forces near the United Arab Emirates and redirected toward Iranian waters, while another cargo ship carrying livestock from Africa to the UAE was sunk off the coast of Oman earlier in the week. These events have reinforced concerns that commercial shipping in the region remains vulnerable to sudden disruption.
The White House stated that both Trump and Xi agreed on the importance of keeping the Strait of Hormuz open, underscoring shared concerns over global energy stability despite broader political tensions between the two powers.
Iran’s Revolutionary Guards said that shipping activity has shown some improvement, with increased vessel movement through the strait since midweek. However, the level of traffic remains significantly below pre-war norms, suggesting that confidence in safe passage has not fully recovered.
Market analysts say supply conditions remain the primary driver of oil prices. According to Yang An, oil prices continue to be supported by tight supply fundamentals even as sentiment fluctuates. He noted that although shipping through the Strait of Hormuz has helped ease some concerns, it has not been enough to offset broader supply constraints or reverse the upward trend in prices.
Oil prices, which swung sharply during recent trading sessions, ultimately closed near their daily highs, signaling persistent bullish momentum. With supply risks unresolved and geopolitical tensions still elevated, traders remain cautious that further escalation could push prices even higher in the weeks ahead.
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