Key Highlights

  • Brent crude advanced 1.7% to settle at $106.88 per barrel; WTI increased 1.4% to $97.21 per barrel Friday
  • Both major benchmarks headed toward their strongest weekly performance since the beginning of March
  • The Strait of Hormuz continues operating at near-complete closure, eliminating approximately 20% of worldwide oil transportation
  • Trump indicated he would postpone finalizing a comprehensive agreement with Iran, intensifying market volatility
  • Goldman Sachs calculates Persian Gulf production dropped by approximately 14.5 million barrels daily, exceeding 50% of April volumes

Energy markets experienced substantial gains Friday following President Donald Trump’s announcement that he would delay concluding the U.S.-Iran standoff, injecting additional volatility into already turbulent commodity markets.

Brent crude futures advanced 1.7% to settle at $106.88 per barrel. U.S. West Texas Intermediate climbed 1.4% to close at $97.21 per barrel. Both primary benchmarks appeared headed for their most substantial weekly advance since the opening weeks of March.

Brent Crude Oil Last Day Financ (BZ=F)
Brent Crude Oil Last Day Financ (BZ=F)

The price movements arrive as the Strait of Hormuz — a critical maritime passage along Iran’s southern border — continues operating at minimal capacity for tanker vessels. Roughly 20% of worldwide petroleum moves through this strategic channel.

The waterway has experienced severe operational restrictions for multiple weeks. Leading Gulf petroleum exporters such as Saudi Arabia and Qatar have begun investigating alternate maritime pathways, though none have successfully compensated for the shortfall.

Iranian forces detained vessels attempting passage through the strait during the current week. American military units simultaneously intercepted a supertanker transporting Iranian petroleum in the Indian Ocean as naval operations intensified around Iranian harbor facilities.

Thursday saw Trump publish on Truth Social that he had directed the U.S. Navy to employ lethal force against any Iranian craft discovered placing explosives in the strait. Iran responded by broadcasting footage showing its special forces boarding a commercial vessel while highlighting its rapid-attack boat arsenal.

Diplomatic Efforts Remain Frozen

Attempts to restart diplomatic channels continue facing obstacles. Two American government sources speaking with Bloomberg indicated that Trump’s social platform statements and the active naval embargo have hindered mediation attempts led by nations including Pakistan.

Trump informed journalists Thursday that he preferred avoiding hasty commitments to a long-term agreement, noting that American actions had severely weakened Iran’s armed forces and left the nation destabilized.

A temporary cessation of hostilities between Washington and Tehran received an indefinite extension earlier this week, though petroleum markets demonstrated minimal confidence in the development. The Lebanon-Israel truce also gained a three-week extension following diplomatic discussions in Washington.

A U.S.-blacklisted supertanker loaded with Iranian petroleum was observed Friday seemingly trying to navigate the Strait of Hormuz, while general tanker movement through the passage remained essentially halted.

Goldman Projects Extended Supply Constraints

Goldman Sachs researchers, led by Daan Struyven, stated in an April 23 analysis that Persian Gulf petroleum extraction might require “a few months” to achieve substantial restoration — contingent upon complete Hormuz reopening and absence of additional military actions.

The financial institution calculates that Gulf production has declined by approximately 14.5 million barrels daily, representing over half of the region’s April output.

“Oil is rising more because of the physical supply shock rather than a geopolitical risk premium alone,” said Charu Chanana, chief investment strategist at Saxo Markets. “The war risk may be fading at the margin, but the flow risk has not gone away.”

Mona Yacoubian of the Center for Strategic and International Studies noted the disruption is proving hard to ignore. “The longer this continues, the more it becomes clear that the disruptive effects of this conflict are going to reverberate for months, if not longer,” she said.

Brent appeared positioned for a weekly increase of approximately 17% as of Friday morning trading.