Crude oil hovered around $77 per barrel on Friday, fluctuating between gains and losses as investors weighed negotiations between Iran and Oman over the Strait of Hormuz against renewed geopolitical tensions. Initial optimism about a partial reopening of the critical shipping lane faded after reports that Iran sought to bar US and Israeli vessels and levy fees on countries it deems hostile. The United States, by contrast, has pressed for unrestricted passage and a full return to pre-war conditions, leaving the two sides appearing far apart on the terms of any deal.
President Donald Trump nonetheless struck an upbeat tone, suggesting the conflict could end “pretty soon” and that talks were making headway. Yet market concerns over maritime security intensified following reports that Iran had attacked “hostile targets” in the strait after explosions near Qeshm Island. In a separate development, Iran-aligned Houthi militants claimed responsibility for a “large-scale” attack on forces loyal to Yemen’s Saudi-backed government.
