Brent Rises for 5th Session

Brent crude futures traded around $105.7 per barrel on Friday, marking a fifth straight session of gains and bringing the weekly advance to roughly 17% as supply concerns remained elevated. The White House said it would send envoys to Pakistan, where Iranian officials are also expected, raising cautious hopes that stalled US Iran talks could resume and eventually lead to the reopening of the Strait of Hormuz. However, Iran signaled a more guarded stance, with reports indicating no formal negotiations are currently planned during Foreign Minister Abbas Araghchi’s visit. While the possibility of diplomacy has trimmed some geopolitical risk premium, markets remain focused on the continued disruption to flows as the key shipping route stays largely closed. The US naval blockade is still limiting Iranian exports and remains a key sticking point, and analysts warn that even if the strait reopens, it could take months for supply flows to fully normalize.

Brent crude oil futures slipped to $104.4 per barrel on Friday, reversing earlier gains and snapping a four-session winning streak as hopes of diplomatic progress between the US and Iran improved sentiment. Reports indicated Iranian Foreign Minister Abbas Araghchi was expected to arrive in Islamabad, with sources suggesting a high likelihood of a breakthrough in negotiations involving mediators such as Pakistan. Despite the pullback, oil remains on track for a weekly gain of about 14%. Markets continue to be influenced by US policy signals, including President Donald Trump’s continuation of a naval blockade on Iranian ports, which has restricted crude exports from the Persian Gulf since the conflict began. The blockade remains a key obstacle in negotiations. A sanctioned tanker carrying Iranian oil was also seen attempting to leave the Strait of Hormuz, highlighting ongoing tensions in the vital shipping route that has seen sharply reduced flows since the war began.

Brent crude futures rose above $106 per barrel on Friday, on track to gain nearly 18% for the week as stalled US-Iran peace negotiations and the continued closure of the Strait of Hormuz fueled supply concerns. Reports indicated that President Donald Trump’s Truth Social posts, along with his decision to maintain a naval blockade of Iranian ports, have complicated prospects for renewed negotiations with Tehran. In a post on Thursday, Trump said he had ordered the US Navy to “shoot and kill” vessels laying mines in the strait, while US forces also boarded a supertanker carrying Iranian oil in the Indian Ocean. Meanwhile, the US-Iran ceasefire has been extended indefinitely as Washington awaits a new formal proposal from Tehran, while the truce between Israel and Lebanon has also been prolonged by three weeks. The ongoing disruption has led to a sharp decline in shipments from major Middle Eastern oil and gas producers, substantially tightening global supply.