Oil prices jumped more than 1% on Friday as tensions between the United States and Iran flared up again.
The renewed tensions raised fears about the future of the fragile ceasefire and weakened hopes for a deal that could fully reopen the Strait of Hormuz, one of the world’s most important oil shipping routes.
Brent crude rose by $1.41 to reach $101.47 a barrel, while US West Texas Intermediate (WTI) climbed $1.12 to $95.93 a barrel after strong early trading gains.
The increase comes after three straight days of falling prices.
Earlier this week, markets were optimistic after reports suggested Washington and Tehran were close to an agreement that could end the fighting and reopen the Strait of Hormuz, while leaving other difficult issues for later talks.
Even with Friday’s rebound, oil prices are still heading toward a weekly loss of around 6%.
Market tensions increased again after reports of a US violation of the ceasefire, adding fresh uncertainty to global energy markets.
