Oil prices rise as as market waits on deal to open Strait of Hormuz

Oil prices rose Friday as investors waited for an agreement teased by the Trump administration earlier this week to open the Strait of Hormuz to freedom of navigation.

Brent crude futures, the international benchmark, gained more than 1% to close at $83.55 a barrel. U.S. West Texas Intermediate advanced about 1% to settle at $78.18 per barrel. Prices fell more than 7% for the week.

Treasury Secretary Scott Bessent told CNBC on Tuesday that an agreement to open Hormuz with freedom of movement could come as soon as Wednesday. President Donald Trump and Secretary of State Marco Rubio had also indicated that an agreement was imminent.

But a deal still has not been announced yet. Meanwhile, ship traffic through Hormuz was down 33% on Friday compared to the day prior with most vessels using the Iranian route, according to the trade intelligence firm Kpler.

Iran and Oman are working on an agreement to define transit routes through the strait, according to media reports. Inbound traffic would transit Iranian waters while outbound traffic would go through Omani waters.

But Iranian state media published a draft plan Thursday that would restrict traffic through Hormuz. The plan is under review by Iran’s parliament, according to the state outlet Fars.

Under the draft plan, Iran would ban U.S. and Israeli ships from transiting the Strait. Other nations that have harmed Iran would not be allowed to transit until compensation is paid, according to the draft.