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Oil prices rise 3% after Trump says he is beginning to lose patience with Iran
Oil prices rose more than 3% on Friday after US President Donald Trump said he was beginning to lose patience with Iran, increasing concerns over the lack of progress toward a peace agreement that would end attacks and ship seizures around the Strait of Hormuz.
Brent crude futures climbed by $3.47, or 3.3%, to $109.19 per barrel by 09:25 GMT. US West Texas Intermediate crude futures also rose by $3.72, or 3.7%, to $104.89 per barrel.
For the week, Brent crude surged 7.8%, while West Texas Intermediate gained 9.9%, amid uncertainty surrounding the fragile ceasefire in the conflict with Iran.
Following talks with Chinese President Xi Jinping, Trump said they agreed that Iran must not be allowed to possess nuclear weapons and that Tehran must reopen the Strait of Hormuz, adding that he is beginning to lose patience with Iran.
Vandana Hari, founder of oil market analysis firm Vanda Insights, said:
“The market’s focus has shifted back toward the deadlock and the closure of the Strait of Hormuz, with growing risks of another military escalation.”
President Xi did not comment on his discussions with Trump regarding Iran, although China’s Foreign Ministry issued a statement saying:
“This conflict, which should never have happened, has no justification to continue.”
Among the deals markets had been anticipating from the summit, Trump said China is interested in purchasing oil from the United States.
Meanwhile, Iran’s Revolutionary Guard announced that 30 vessels crossed the Strait of Hormuz between Wednesday evening and Thursday, a figure still well below the pre-war average of 140 ships per day, though it represents a notable increase if confirmed.
Tamas Varga, analyst at PVM, said:
“There is a growing number of vessels beginning to pass through the strait... however, this is currently having a greater impact on market sentiment than on the actual oil balance.”
Shipping analytics firm Kpler said Thursday that 10 vessels passed through the strait over the previous 24 hours, compared with around five to seven ships per day during recent weeks.
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