Oil prices have moved higher today following new tensions in the Strait of Hormuz. Brent crude, the international benchmark for oil prices, climbed to $83 per barrel on Friday morning, reversing some earlier drawdowns this week.
The rise in prices follows reports of Iran striking what it described as “hostile targets” in the strait, after explosions were reported near Qeshm Island. This development has unsettled markets and impacted earlier optimism regarding a potential peace deal between the US and Iran.
Despite an agreement brokered by Iran and Oman on broad terms to open the Strait of Hormuz, Iran's foreign ministry spokesman Esmaeil Baqaei stated that a deal with Oman would not guarantee safe navigation. Under the new agreement, ships entering the waterway would travel closer to Iran, while outgoing vessels would use a passage closer to Oman.