Oil Prices Rise as Iran and Oman Discuss Hormuz Rules

Crude futures rebounded toward the end of the trading week as energy traders closely watched emerging diplomatic framework details between Tehran and Muscat concerning navigation guidelines in the critical Strait of Hormuz.

Brent crude picked up 93 cents to touch $83.42 a barrel by early afternoon in North America, reflecting a 1.14 percent rise. Simultaneously, West Texas Intermediate grew by 96 cents, or 1.24 percent, trading at $78.25 per barrel.

The gains built upon Thursday's substantial rally, where contracts settled more than three dollars per barrel higher following reports that Iranian lawmakers were reviewing a proposal to block American and Israeli vessels from crossing the strategic choke point. Historically, roughly one-fifth of global petroleum and liquefied natural gas supplies moved through this narrow maritime corridor prior to regional conflict breaking out in late February.

Despite Friday's upward movement, both primary international crude benchmarks remained on track for a steep weekly slide exceeding nine percent. Prices had retreated significantly in previous sessions as investors priced in a potential diplomatic resolution to the hostilities.

Market observers noted that energy desks are intensely focused on the exact terms of the proposed bilateral agreement. Andrew Lipow, president of Lipow Oil Associates, highlighted that investors are trying to figure out if the arrangement would permit American-flagged ships, US-owned tankers, or vessels bound for American ports to navigate the passage safely.