Oil prices rose on Friday amid growing concerns of a new military escalation in the Middle East after Iran released footage of commandos storming a merchant ship in the Strait of Hormuz, as well as information about activating Iranian air defenses against "hostile targets".
Brent crude oil futures rose 99 cents, or 0.94%, to $106.06 a barrel by 04:10 GMT, while U.S. light crude (WTI) added 71 cents, or 0.73%, to $96.56 per barrel. For the week, Brent is up 17.13%, and WTI is up 15.13%, the second-biggest weekly gain since the start of the war.
The rise comes amid the continued closure of the Strait of Hormuz after the start of the war between the United States and Israel against Iran - a key route through which about 20% of global oil and liquefied natural gas supplies pass. On Thursday, the two main benchmarks jumped by more than 3%, with prices rising by about $5 per barrel after reports of active combat operations in the airspace over Tehran and domestic political tensions in Iran.
US President Donald Trump said that Tehran may have strengthened its armaments during the two-week truce, but stressed that US forces could neutralize them "in just one day". At the same time, he refused to set a specific deadline for reaching a peace agreement, saying he wanted a "grand deal" and urged not to be rushed.
Analysts have warned that the truce increasingly looks like a preparation for a new phase of the conflict. According to a report by Haitong Futures, if talks between Washington and Tehran fail to make significant progress by the end of April and hostilities are renewed, oil prices could reach new highs for the year.
Further tension was caused by a video released by Iran showing an operation to seize a large merchant ship in the Strait of Hormuz - a demonstration of Tehran's control over the strategic waterway. Experts warn that prolonged disruptions in traffic through the strait could push global crude and refined product stocks below their seasonal five-year levels as early as late May or early June, adding an additional "risk premium" to prices.
Meanwhile, Donald Trump said Israel and Lebanon had agreed to extend their ceasefire by three weeks after a high-level meeting in Washington. Lebanon will work with the US to strengthen its defense capabilities against the Shiite group "Hezbollah", which did not participate in the talks and says it has a "right to resist".
Israel had previously warned it was ready to resume strikes on Iran, a signal that further increased uncertainty in energy markets and kept crude prices under pressure to rise again.