Oil rises amid concerns over mounting Middle East tensions

Oil prices rose on Friday as fears of renewed military escalation in the Middle East intensified, after Iran published footage showing its special forces storming a cargo ship in the Strait of Hormuz, in light of the absence of any progress regarding the reopening of this vital passage.

And navigation traffic through the Strait, which used to transport about one-fifth of global oil production before the war, remains nearly at a standstill, while Iran's seizure of two cargo ships highlighted the difficulty of Washington's control over traffic in the region.

And Brent crude contracts rose by 2.18 dollars, or 2.1%, to reach 107.25 dollars per barrel by 10:19 GMT, while American West Texas Intermediate crude contracts climbed 1.78 dollars, or 1.9%, to 97.63 dollars.

And on a weekly basis, Brent crude rose by about 18%, and West Texas crude by about 16%, recording the second-largest gains since the outbreak of the war.

And the two crudes had closed at an increase exceeding 3% on Thursday, following reports of air defenses intercepting targets over Tehran, along with news of internal conflict between the hardline and moderate currents within Iran.

And Tamas Varga from the oil brokerage firm PVM said: "There are no signs of de-escalation."

For his part, American President Donald Trump said that Iran might have strengthened its military capabilities "a little" during a two-week truce, but he added that the American military is capable of eliminating them "in one day." And he had announced on Wednesday the extension of the ceasefire indefinitely to allow more time for peace talks.

And the firm "Haitong Futures" viewed in a report that the ceasefire appears increasingly like a preliminary stage for more fighting, pointing out that in the event of the failure of talks by the end of April and the resumption of fighting, oil prices might rise to new record levels this year.

And Susannah Streeter, chief investment strategist at "Wealth Club," said: "It is expected that we will witness new financial pressures, with the continued disruption of major shipments from the region," adding that this will keep the costs of many goods high.

And in light of the search by investors and governments around the world for a permanent solution, Trump emphasized that he will not set a "timeframe" for ending the conflict, saying that he seeks a "grand bargain."

And he added: "Don't rush me," in response to a question regarding the duration he is prepared to wait to reach a long-term agreement.