Oil surges above $83 as Strait of Hormuz tensions shake global markets

Brent crude futures gained 1.1 percent to reach $83.48 per barrel, while US West Texas Intermediate (WTI) crude rose by 85 cents to $78.84 per barrel.

Global oil prices continued their upward momentum on Friday, with Brent crude climbing above $83 per barrel as renewed tensions surrounding the Strait of Hormuz heightened concerns over potential disruptions to global energy supplies.

Brent crude futures gained 1.1 percent to reach $83.48 per barrel, while US West Texas Intermediate (WTI) crude rose by 85 cents to $78.84 per barrel.

The latest rally marks a sharp reversal from earlier this week, when crude prices had declined amid expectations that diplomatic efforts between Iran and Oman could ease regional tensions and pave the way for smoother maritime traffic through the Strait of Hormuz.

However, investor sentiment shifted after reports that Iran, in coordination with Oman, proposed new restrictions on shipping through the strategic waterway. The proposal reportedly includes banning vessels belonging to countries considered hostile from passing through the strait and imposing substantial financial penalties on ships that violate the proposed regulations.

The renewed uncertainty over one of the world’s most important oil transit routes has reignited fears of supply disruptions, prompting traders to push oil prices higher despite earlier forecasts predicting further declines. Analysts say developments in the Strait of Hormuz will remain a key factor influencing global energy markets in the coming days.