Global oil prices saw a surge on Friday, pushing Brent crude past $83 per barrel amid a resumption in the West Asia conflict that raised concerns over potential disruptions to global energy supplies.
Moreover, US West Texas Intermediate (WTI) crude climbed by 85 cents to $78.84 per barrel, while Brent crude futures gained 1.1 percent to reach $83.48 per barrel.
The latest price surge has reversed the development from last week when oil prices dropped on hopes that diplomatic efforts between Iran and Oman could ease regional tensions and pave the way for smoother maritime traffic through the Strait of Hormuz.
However, market sentiments shifted following reports of a joint proposal by Iran and Oman introducing new restrictions on shipping via the Strait of Hormuz. Reportedly, the joint agreement states restrictions such as banning vessels belonging to countries considered hostile from passing through the strait and imposing substantial financial penalties on ships that violate the proposed regulations.
The resumption of tensions causing uncertainty in the strategic waterway has revived fears of supply disruptions, prompting traders to push oil prices higher despite earlier forecasts predicting further declines.
