Oil markets opened higher in Asian trading on Friday as traders weighed a turbulent end to April and ongoing worries about supply interruptions from conflict-related tensions in the Middle East.
Prices and contracts: Brent futures for July advanced about 1% to $111.50 a barrel by 20:35 ET (00:35 GMT). The nearby Brent June contract expired on Thursday after reaching a four-year peak above $126 per barrel. West Texas Intermediate futures for June rose roughly 0.5% to $105.57 per barrel.
Crude benchmarks climbed sharply on Thursday, registering levels last seen amid the 2022 Russia-Ukraine crisis, after reports indicated that U.S. President Donald Trump was weighing a range of military options against Iran. Those reported options included forcibly reopening the Strait of Hormuz, conducting additional strikes against Iranian targets, and seizing Iran's enriched uranium using special forces.
In public statements, the U.S. indicated that a naval blockade of Iran would remain in place, with the president earlier expressing the hope that economic pressure might push Tehran toward a negotiated outcome. Iran strongly condemned the blockade and vowed to keep the Strait of Hormuz closed. Recent shipping data, according to market accounts, showed little improvement in flows through the strait.
Prices were further supported by the prospect that a protracted impasse over access through the Strait of Hormuz would maintain upward pressure on crude. The channel currently handles roughly 20% of the world’s oil shipments, so disruptions there have direct implications for global supply.
At the same time, while a ceasefire with Iran was reported to have been extended indefinitely, diplomatic efforts to resolve the dispute have largely failed to gain traction. That combination - an ongoing naval posture, limited improvement in shipping flows, and stalled talks - contributed to market expectations of continued supply vulnerability and near-term price support.
Market context: Traders remain sensitive to headlines from the region, and the recent volatility has left oil prices higher after the end of April. With the June Brent contract expired after a dramatic run-up and the July contract trading more than $111 a barrel, market participants are watching both geopolitical developments and shipping flow indicators for signs of easing or escalation.
Outlook: Given the information currently available, markets are treating the prospect of a sustained Hormuz disruption and the broader U.S.-Iran deadlock as key drivers of near-term price direction.