Oil prices extended their gains during Friday's Asian deals, as the conflict involving Iran showed no signs of resolution, with supply disruptions continuing to underpin the market.
By 2:25 pm AEST (4:25 am GMT), Brent crude futures for July had climbed $0.99, or 0.9%, to $111.39 per barrel, while U.S. West Texas Intermediate futures gained 41 cents, or 0.4%, to $105.48.
Both benchmarks are now on track for a fourth consecutive monthly gain. Brent’s June contract, which expired on Thursday, surged to $126.41 per barrel during the session, marking its highest level since March 2022.
Oil prices have been climbing steadily since late February, when military action by the United States and Israel against Iran triggered the closure of the Strait of Hormuz. The disruption has impacted shipments of roughly one-fifth of the world’s oil and liquefied natural gas supply, sending prices sharply higher, with Brent rising around 50% in March alone.
Although a ceasefire has technically been in place since April 8, progress towards a lasting resolution appears limited. Iranian Foreign Ministry spokesman Esmaeil Baghaei signalled ongoing uncertainty around negotiations.
"Expecting to reach a result in a short time, regardless of who the mediator is, in my opinion, is not very realistic," he was quoted as saying.
Analysts also highlighted the growing risks to supply. ANZ noted: "The market is concerned that the ongoing closure of the Strait of Hormuz will extend production shut-ins at Persian Gulf producers. Iran’s new supreme leader, Mojtaba Khamenei, gave a rare statement yesterday, vowing not to give up the country’s nuclear or missile technologies.
"He also signalled that Iran will keep control of the Strait of Hormuz. The U.S. is also ramping up pressure on Iran through its blockade of Iranian ports. Despite the move helping push oil prices to a record high, President Trump said he’s sticking with the blockade.
"Moreover, there are concerns that the U.S. is preparing for renewed hostilities. Axios reported that Trump has been recently briefed on options including some short and powerful strikes, as well as military action to seize control of the Strait of Hormuz."
Earlier in the session, prices briefly spiked after a senior official from Iran’s Revolutionary Guards warned of “long and painful strikes” against U.S. positions if Washington resumes attacks.
The ongoing standoff between Tehran and Washington continues to cloud the outlook for global energy markets, with traders closely monitoring any developments that could either escalate the conflict or pave the way for a diplomatic resolution.
