Oil prices ended a volatile trading session on Friday with mixed results, but still recorded strong weekly gains as markets weighed ongoing supply risks against possible diplomatic efforts between the United States and Iran that could ease tensions.
Brent crude futures settled at $105.33 per barrel, rising 26 cents or about 0.3 per cent. US West Texas Intermediate (WTI) crude futures closed at $94.40 per barrel, down $1.45 or 1.5 per cent. Despite the mixed daily performance, Brent gained around 16 per cent over the week, while WTI rose nearly 13 per cent.
Prices fluctuated sharply throughout the session. Early gains of about 2 per cent were driven by concerns over renewed military escalation in the Middle East, particularly after reports of Iranian naval activity in the Strait of Hormuz and uncertainty over maritime security in the region.
However, the market reversed direction following reports from Reuters that Iranian Foreign Minister Abbas Araqchi was expected to travel to Islamabad to discuss proposals for restarting stalled peace talks with the US. Additional pressure came after CNN reported that US officials, including special envoy Steve Witkoff and Jared Kushner, were being sent for diplomatic engagement related to Iran.
US President Donald Trump also told Reuters that Iran was preparing an offer intended to meet US demands, adding further uncertainty to market direction. “They’re making an offer and we’ll have to see,” he said.
Later in the session, traders continued to adjust positions amid shifting geopolitical signals. Analysts noted that markets remained highly sensitive ahead of the weekend due to unpredictable developments in the region.
The Strait of Hormuz, a key global shipping route that previously handled around one-fifth of the world’s oil supply, has remained largely disrupted. Shipping data indicated that only a few vessels, including an Iranian oil tanker, had passed through the strait in the past 24 hours.
Market analysts said the situation is keeping traders cautious. Oil consultant Jim Ritterbusch noted that escalating tensions and uncertainty over ceasefire stability could support higher prices, particularly in Brent and diesel markets, which are more sensitive to supply disruptions.
Some forecasts suggest that if peace talks fail to progress and conflict resumes, oil prices could climb to new yearly highs.
