Oil prices rose on Friday amid escalating tensions around the Strait of Hormuz, a critical shipping route for global oil supply. West Texas Intermediate crude futures for May delivery increased by 0.55% to $98.33 per barrel, while Brent crude for June delivery climbed over 1% to $96.91 per barrel. Despite a recent ceasefire agreement between the U.S. and Iran, shipping through the strait remains largely restricted, with President Trump warning Iran against charging tankers for transit.

The ongoing disruptions are significant for the oil market, as the Strait of Hormuz previously accounted for about 20% of global oil supply. Additionally, attacks on Saudi Arabia’s energy infrastructure have reduced its oil production capacity by approximately 600,000 barrels per day. Analysts at Goldman Sachs suggest that with Gulf imports falling below 2 million barrels per day, buyers may need to lean on stockpiles and alternative sources for at least the next month.

Market professionals should closely monitor developments in the region, as continued supply disruptions could sustain upward pressure on oil prices and impact global demand dynamics.

Source: cnbc.com