Oil prices moved higher on Friday as investors became more doubtful about the chances of a breakthrough in peace talks between the United States and Iran. Concerns remain over Iran’s uranium program and control of the Strait of Hormuz, even as oil markets continue heading toward weekly losses.
According to Reuters, a senior Iranian official said the two sides still have not reached a final agreement, although the gap between them has narrowed during negotiations.
At the same time, Marco Rubio pointed to “positive signs” in the talks but stressed that any attempt to impose fees on ships passing through the Strait of Hormuz would be unacceptable.
Brent Crude futures rose by $2.38, or 2.3%, to reach $104.96 per barrel. Meanwhile, West Texas Intermediate crude gained $1.73, or 1.8%, climbing to $98.08 per barrel.
Despite Friday’s rebound, both major oil benchmarks had dropped around 2% on Thursday, marking their lowest closing levels in nearly two weeks.
Satoru Yoshida said uncertainty surrounding the future of the U.S.-Iran talks continues to support oil prices because traders remain worried about tensions in the Middle East and the possibility of supply disruptions through the Strait of Hormuz.
He added that West Texas Intermediate crude could continue trading between $90 and $110 per barrel next week, a range the market has mostly stayed within since late March.
