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Global crude oil prices climbed sharply this week after fresh tensions between the United States and Iran increased fears over possible disruptions in the Strait of Hormuz, a key route for global energy shipments.
Brent Crude futures settled at $109.26 per barrel on Friday, rising $3.54 or 3.35 per cent during the session.
West Texas Intermediate crude closed at $105.42 per barrel, gaining $4.25 or 4.2 per cent.
On a weekly basis, Brent advanced 7.84 per cent, while WTI recorded a stronger jump of 10.48 per cent as investors remained concerned about the stability of energy supplies.
Market sentiment weakened after Iranian Foreign Minister Abbas Araqchi said Tehran had little trust in Washington and would engage in negotiations only if the United States demonstrated seriousness. He also said that Iran remained prepared for both diplomatic discussions and the possibility of renewed conflict.
The comments came after US President Donald Trump reiterated that Iran should not be allowed to develop nuclear weapons and called for the reopening of the Strait of Hormuz.
The strategic waterway handles nearly one-fifth of the world’s oil and liquefied natural gas shipments. It also serves as a major export route for energy producers such as Saudi Arabia, Iraq, and Qatar. Any disruption in the region could significantly affect global energy supplies and trade flows.
Investors had earlier expected that the ceasefire in the Iran conflict could ease shipping concerns in the region.
Recent statements from both sides have, however, lowered hopes of an immediate resolution, increasing worries about prolonged supply disruptions.
During his visit to China, President Trump also spoke about Iran. He said that he and Chinese President Xi Jinping agreed that Iran should not possess nuclear weapons.
China later issued a statement through its Foreign Ministry on the conflict. The Ministry said the conflict should never have occurred and there was no reason for it to continue.
Tensions between Washington and Beijing resurfaced after reported remarks from Xi regarding Taiwan and future bilateral relations.
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