Oil prices climbed Friday as traders waited for a deal teased by the Trump administration to reopen the Strait of Hormuz to free navigation, but no agreement had materialized. Ship traffic through the strait dropped 33% on the day, while Iranian state media published a draft plan that would restrict which vessels can pass.
Oil prices rose Friday, yet a deal to reopen the Strait of Hormuz to freedom of navigation still had not been announced, despite signals from the Trump administration that one was close.
Prices climb but remain down for the week
Brent crude futures rose 1% to $83.46 a barrel. U.S. West Texas Intermediate traded 1% higher to $78.33 per barrel. Even so, prices are down more than 7% for the week.
A promised deal has not arrived
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 an agreement was imminent. But the deal has yet to be announced.
Meanwhile, ship traffic through Hormuz was down 33% on Friday compared with the day before, with most vessels using the Iranian route, according to trade intelligence firm Kpler. Iran and Oman are reportedly working on an agreement to define transit routes through the strait, under which inbound traffic would move through Iranian waters while outbound traffic would use Omani waters.
Iran's draft plan would restrict transit
Iranian state media published a draft plan Thursday that would restrict crude oil traffic through Hormuz. The plan is under review by Iran's parliament, according to 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.
Source: CNBC
Trading involves risk.
Risk Disclaimer
