Oil prices posted a modest increase as traders weighed whether the latest conflict between the United States and Iran could undermine a fragile ceasefire, dimming hopes for a near-term peace agreement.
The global benchmark Brent crude rose 1.2% to settle around $101 per barrel, though it still recorded a weekly decline of approximately 6%.
While U.S. officials expressed expectations that Iran would soon respond to the latest proposals, renewed clashes in the Persian Gulf continued to unsettle the market.
Market attention remained fixed on shipping in the Strait of Hormuz, which has been largely paralyzed since the outbreak of war in late February.
Iran criticized the U.S. for violating the ceasefire agreement. According to the Tasnim News Agency, Iran is preparing to develop a plan regarding the "legal regime" of the Strait of Hormuz.
"Control over the Strait of Hormuz has become Iran's most powerful bargaining chip," wrote analysts including Ben Hoff from Societe Generale in a report. "Recent seizures and harassment of vessels indicate that, while diplomacy remains the baseline scenario, there is a material risk of conflict reigniting."
Oil prices briefly retreated on Friday afternoon after U.S. President Donald Trump announced a three-day ceasefire to be implemented by Russia and Ukraine.
Prices fluctuated within a range of about $10 this week, reflecting shifting market expectations regarding the conflict outlook.
June WTI crude rose 0.6%, settling at $95.42 per barrel.
July Brent crude advanced 1.2%, settling at $101.29 per barrel.
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