Oil prices moved higher on Friday and remained on track for a weekly gain as disruptions linked to the Iran conflict continued to tighten global supplies and keep pressure on energy markets.
Brent crude climbed towards $107 a barrel, with prices up about 5% for the week. U.S. benchmark West Texas Intermediate traded near $102 a barrel.
The rise in prices came as the Strait of Hormuz remained largely shut to normal trade flows, while efforts to secure a lasting resolution to the conflict between Washington and Tehran showed little progress. The International Energy Agency said global oil inventories fell at a record pace in March and April as supply disruptions from the Middle East intensified.
According to the agency's monthly report, observed global oil stockpiles declined by about 4 million barrels a day during the two-month period. The IEA said the market could remain "severely undersupplied" until October even if the conflict ends next month.
Global supply losses deepened further last month, with the agency estimating that disruptions since February have reached 12.8 million barrels a day after another decline of 1.8 million barrels a day in recent weeks.
Strait Of Hormuz Disruptions Continue
Shipping risks in the region remained elevated as the U.S. naval blockade around Iranian ports stayed in place.
Waters near the Strait of Hormuz also continued to face security concerns after a commercial vessel was seized by unauthorised personnel near the entrance to the waterway and taken into Iranian territory.
The conflict has effectively shut the Strait of Hormuz, a key route connecting the Persian Gulf with global energy markets, adding to concerns over supply shortages. A ceasefire has technically remained in place since early April despite repeated flare-ups, but talks between the United States and Iran have shown little sign of progress.
U.S. President Donald Trump recently said the ceasefire was on "massive life support" while criticising Tehran's response to Washington's proposal aimed at ending the conflict.
Trump-Xi Talks In Focus
Markets also tracked developments from Beijing, where Trump met Chinese President Xi Jinping on Thursday.
According to a White House official, the two leaders discussed keeping the Strait of Hormuz open to support global energy trade and improving U.S. oil exports to China.
China's official summary of the meeting did not mention energy discussions directly, although it confirmed that the Middle East conflict was part of the talks.
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