Oil prices rose sharply in early Asian trade on Friday, recovering from recent losses as markets monitored progress toward a US-Iran peace deal.
Optimistic comments from US officials about talks with Iran deepened weekly losses for oil. However, crude remained strong as the Strait of Hormuz stayed closed and the two sides remained at odds over key issues, particularly Tehran's nuclear activities.
West Texas Intermediate crude futures for July jumped 1.6% to $94.34 a barrel. They were down about 6.6% this week.
According to Bond.az, the US and Iran hold opposing stances over Iran's uranium stockpile and control of the Strait of Hormuz. US President Donald Trump reiterated the need to seize Iran's uranium stockpile, stating the country cannot be allowed a nuclear weapon.
Secretary of State Marco Rubio said Tehran's implementation of a toll system in the Strait of Hormuz would make a diplomatic solution unfeasible. However, Rubio noted some progress in talks.
Earlier this week, Trump said he had postponed a planned military attack on Iran and flagged progress in talks. His comments weighed significantly on oil prices this week, as markets anticipated an end to the Iran war.
Reports indicated the US and Iran had reached a final draft for a peace agreement, though neither side confirmed. Oil flows through the Strait of Hormuz remain scant, keeping global supplies pressured. Iran was preparing measures to collect tolls for transit through Hormuz.
