Oil climbs after Trump says he is losing patience with Iran

WASHINGTON: Oil prices rose by more than 1% after US President Donald Trump said he would not be much more patient with Iran, while concerns over attacks on shipping and vessel seizures continued despite Tehran saying around 30 ships had moved through the Strait of Hormuz.

By 0425 GMT, Brent crude futures had gained $1.32, or 1.25%, to reach $107.04 a barrel. US West Texas Intermediate futures were up $1.33, or 1.31%, at $102.50.

On a weekly basis, Brent was up nearly 6%, while WTI had advanced more than 7%, as uncertainty persisted over a shaky ceasefire in the Iran conflict.

Trump, speaking in an interview broadcast on Fox News on Thursday night, said, "I am not going to be much more patient, and added: They should make a deal."

Market focus remains on Strait of Hormuz

US Trade Representative Jamieson Greer said in an interview with Bloomberg on Friday morning that China was taking a pragmatic approach to involvement with Iran, and that keeping the Strait of Hormuz open was important for Beijing.

Trump and Chinese President Xi Jinping were due to meet on Friday at the end of a two-day state visit marked by ceremony and business agreements. Among the outcomes being watched by the market, Trump said China wanted to purchase oil from the United States.

Vandana Hari, founder of oil market analysis firm Vanda Insights, said the Beijing summit had not produced a breakthrough on Iran and that attention had shifted back to the impasse and the blocked waterway, along with the risk of renewed military escalation.

With the Beijing summit not delivering any breakthrough on Iran, market focus is back on the deadlock and a blockaded Strait, with a tail risk of renewed military escalation.

she said.

The White House said Trump and Xi had agreed on the importance of keeping the shipping route open.

Shipping incidents add to supply concerns

In developments around the Strait of Hormuz, a vessel was reported seized by Iranian personnel off the United Arab Emirates on Thursday and was said to be heading toward Iranian waters. Separately, an Indian cargo ship carrying livestock from Africa to the UAE sank on Wednesday in waters off Oman.

Iran’s Revolutionary Guards said 30 vessels had crossed the Strait of Hormuz since Wednesday evening. Remained well below the roughly 140 ships that had typically passed through each day before the war, though it would still mark a notable increase if confirmed.

Yang An, an analyst at Haitong Futures, said tight supply remained the main factor supporting prices.

Oil prices swung several times yesterday but still closed near the day's high.

he said.

Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply

he added.