Oil prices edged higher on Friday as geopolitical risks overshadowed coordinated efforts by major economies to stabilize supply and secure shipping routes.
European nations, Japan, and Canada signaled readiness to protect tanker traffic through the Strait of Hormuz, while Washington outlined measures to boost crude availability.
Analysts cautioned that a rapid price correction remains unlikely, citing lasting damage to production and a persistently tight global market.
U.S. Treasury Secretary Scott Bessent indicated sanctions on Iranian oil shipments could be lifted, alongside a potential Strategic Petroleum Reserve release to ease supply pressure.
Brent crude surged past $119 per barrel Thursday, nearing recent highs after Iran disrupted 17% of Qatar’s LNG capacity following an Israeli strike.
The damage to critical infrastructure may take years to repair, reinforcing concerns over prolonged supply constraints and heightened market volatility.
Despite early declines in “war premiums,” analysts noted that oil markets remain highly sensitive to developments around the Hormuz chokepoint and broader regional tensions.
Meanwhile, U.S. output may increase as North Dakota producers restart wells, though officials warned activity will depend on sustained high prices and fixed investment plans.
