Brent crude futures climbed above $105 per barrel on Friday as renewed tensions surrounding Iran’s nuclear programme and the Strait of Hormuz unsettled global energy markets, despite continuing diplomatic efforts toward a possible agreement.
Market sentiment shifted after reports indicated that Iran’s Supreme Leader had ordered the country’s enriched uranium stockpile to remain inside Iran, complicating negotiations with the United States, which continues to push for the dismantling or external transfer of Tehran’s nuclear reserves as part of any long term settlement.
Investors were also rattled by reports that Iran is working with Oman on a framework that could formalize Tehran’s control over maritime traffic through the Strait of Hormuz via a permanent toll system. The proposal has reportedly faced resistance from US President Donald Trump, who insisted the strategic waterway should remain open and free for international shipping.
The Strait of Hormuz remains one of the world’s most critical energy chokepoints, handling roughly one fifth of global oil trade. Continued uncertainty surrounding shipping access and regional security has heightened fears of prolonged supply disruptions and renewed inflationary pressures globally.
Despite Friday’s rebound, Brent crude was still down more than 4% for the week as markets weighed signs that diplomatic channels remain active. US Secretary of State Marco Rubio said there were “encouraging signs” surrounding a possible agreement, while Pakistani mediators were expected in Tehran to continue discussions over Washington’s latest proposal.
Analysts say oil markets remain highly sensitive to headlines surrounding the negotiations, with prices swinging sharply between optimism over a breakthrough and fears of deeper geopolitical escalation.
