Photo caption: A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/File Photo Purchase Licensing Rights
*Brent and WTI set for hefty weekly gains
*More vessels have been crossing Strait of Hormuz
*Ship attacks and seizures remain a worry
*Trump says he is running out of patience with Iran
*Iran says it is prepared to resume fighting
Oil prices gained about 2% on Friday after comments from U.S. President Donald Trump and Iran’s foreign minister further dented hopes of a deal to end ship attacks and seizures around the Strait of Hormuz.
According to Reuters report, Brent crude futures gained $2.50, or 2.4%, to $108.22 a barrel by 1139 GMT. U.S. West Texas Intermediate futures were up $2.86, or 2.4%, at $104.03.
Over the week, Brent has climbed 6.8% and WTI 9.0% on uncertainty over the shaky ceasefire in the Iran conflict.
“The tone between the U.S. and Iran has once again become significantly more confrontational. While the ceasefire holds, hopes for a swift reopening of the Strait of Hormuz have faded,” Commerzbank analysts said.
Iran has “no trust” in the U.S. and is only interested in negotiating with Washington if it is serious, foreign minister Abbas Araqchi said on Friday, adding that Iran is prepared to go back to fighting but also prepared for diplomatic solutions.
Trump said he was running out of patience with Iran and that he had agreed with Chinese President Xi Jinping that Iran cannot be allowed to have a nuclear weapon and must reopen the Strait of Hormuz.
President Xi did not comment on his discussions with Trump about Iran, though China’s foreign ministry issued a statement. “This conflict, which should never have happened, has no reason to continue,” the ministry said.
Among deals the market was looking for from the U.S.-China summit, Trump said China wants to buy oil from the United States. Trump also said he could lift sanctions on Chinese companies that buy Iranian oil.
“Market focus is back on the deadlock and a blockaded Strait of Hormuz, with a tail risk of renewed military escalation,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Iran’s Revolutionary Guards said that 30 vessels had crossed the Strait of Hormuz between Wednesday evening and Thursday, still far short of the 140 a day that was typical before the war, but a substantial increase if confirmed.
