Oil rises toward strong monthly gains as markets monitor developments in the Strait of Hormuz

Oil prices rose during Friday's trading and remained on track to post strong monthly gains as investors continued to assess shipping conditions through one of the world's most important energy trade routes.

In trading, Brent crude futures climbed $1.01, or 1.13%, to $90.04 a barrel by 11:18 GMT, while US West Texas Intermediate (WTI) crude gained $1.18, or 1.41%, to $84.77 a barrel.

Brent is on track to finish July with a gain of about 23%, while WTI is set to rise roughly 22% over the month.

Iranian news agency Fars reported that the Islamic Revolutionary Guard Corps prevented two oil tankers from transiting the Strait of Hormuz, while four other tankers altered their routes.

Despite those reports, vessel-tracking data from Kpler showed that two very large crude carriers (VLCCs) loaded with Gulf crude successfully passed through the strait on Friday, although shipping traffic remained limited.

Ongoing talks

Meanwhile, talks between Iran and Oman over the management of the Strait of Hormuz are continuing, according to the Iranian Labour News Agency, despite Tehran rejecting an Omani proposal for joint administration of the strategic waterway.

At the same time, Saudi Arabia is seeking to lead a coalition aimed at strengthening defense cooperation across the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden, all of which are critical routes for global energy exports.

A drone attack that sparked fires aboard two gas carriers at Egypt's Mediterranean port of Damietta has also renewed concerns over the security of shipping through the Suez Canal, which has become one of the last major export routes available for Saudi oil as the conflict between the United States and Iran continues to widen.