Oil prices on Friday closed at their highest level in more than three years, as President Donald Trump’s pivot to negotiations with Iran failed to ease market fears about the huge supply disruption in the Middle East.
U.S. crude oil prices rose 5.46% to close at $99.64 per barrel. International benchmark Brent crude prices gained 4.22% to settle at $112.57. These are the highest levels since July 2022 when Russia’s invasion of Ukraine shook energy markets.
U.S. crude hit a session high on Friday of $100.04 before retreating slightly. The contract finished out the week about 1% higher while Brent was flat.
Trump‘s move to give Iran a 10-day extension to open the strategically vital Strait failed to soothe supply concerns. The president said in a social media post on Thursday that talks with Iran were “going very well” despite “erroneous statements to the contrary by the Fake News Media, and others.”
As part of the announcement, the U.S. president said he would pause attacks on Iran’s energy infrastructure through to April 6. Iran has not yet commented on Trump’s latest remarks.
Meanwhile, two container vessels owned by China Ocean Shipping Company tried to pass through the Strait but were turned back, according to the ship tracking firm MarineTraffic. China is an ally of Iran and the Islamic Republic has previously said friendly ships can pass through the Strait.
This was the first attempt by a major container carrier to cross the sea route since the war started, the firm said. COSCO is the world’s fourth-largest shipping line by capacity.
The “developments overnight suggest the situation in the Strait of Hormuz remains highly unstable,” the firm said in a social media post.
Oil prices since the start of the year
Speaking during a Cabinet meeting on Thursday, Trump also said that Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week as a “present” to the U.S.
Markets have been closely monitoring developments in the Strait of Hormuz for signs of disruption or de-escalation, as tensions between Washington and Tehran continue to inject volatility into energy prices.
Trump’s remarks suggested that at least some oil shipments are continuing to move through the waterway, potentially easing immediate supply concerns.
However, analysts cautioned that the broader oil market remains increasingly fragile, even if isolated shipments resume.
“The oil market did not underreact to the disruption in the Strait of Hormuz; it absorbed it,” said Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy.
“For nearly four weeks, markets have shown remarkable resilience … supported by a combination of pre-war surplus, crude-on-water, and policy barrels that provided a temporary buffer and kept prices contained. That phase is now ending,” she said.
According to Rystad, the global system has shifted from “buffered to fragile” after weeks of supply losses and inventory drawdowns, leaving little room to absorb further…
Read More: Oil closes at highest level since 2022 on Iran war supply disruption
