15.05.202607:04:25UTC+00Brent Heads for Strong Weekly Gain

Brent crude futures rose to about $107.50 per barrel on Friday and were heading for a weekly gain of more than 6%, as tensions in the Strait of Hormuz persisted amid stalled US–Iran peace talks. On Thursday, President Donald Trump warned Iran to reach a deal or face “annihilation,” stating that his patience with Tehran was running out. His comments came even as Iran reported that roughly 30 ships had transited the Strait.

The US and Iran failed earlier in the week to reach agreement on a US-drafted peace proposal, leaving the vital shipping lane largely closed and dimming hopes for a durable ceasefire. At the same time, the International Energy Agency (IEA) reported that crude and refined product flows through the Strait fell by about 4 million barrels per day in March and April. The agency cautioned that the global oil market could remain significantly undersupplied through October, even if the conflict is resolved next month.

Separately, Trump said China is seeking to purchase oil from the US, as efforts to fully reopen the Strait continue to face obstacles, including reports of ship attacks and seizures this week.