Oil prices have reversed their recent decline, rising as the ceasefire agreement between the United States and Iran faces new challenges. Brent crude, the international benchmark, increased by 0.65% on Friday after earlier dropping as much as 0.9%, as traders assessed the impact of renewed conflict in Lebanon and the slow reopening of the Strait of Hormuz.
Brent futures for August delivery stood at $80.37 per barrel at 06:30 GMT, pushing the benchmark above the $80 threshold for the first time since Wednesday. The uptick follows an earlier slide caused by a slight increase in commercial vessels carrying energy supplies through the strait.
The price movement comes after Israel launched a series of attacks on southern Lebanon, killing 16 people and threatening the U.S.-Iran agreement. Clashes between Israeli forces and Hezbollah on Friday resulted in the deaths of four Israeli soldiers, according to Israeli media. A planned meeting between U.S. and Iranian officials in Switzerland has been canceled, reportedly due to the attacks, although the Strait of Hormuz appears to remain open for shipping.
In Asian markets, Japan's Nikkei 225 and South Korea's Kospi experienced volatile trading. The Kospi surged over 2.5% to a record high shortly after opening, then dropped 1.8% before recovering to a 0.8% gain. The Nikkei, which rose about 0.6% at the open, ended the session down 0.08%. Markets in Shanghai, Hong Kong, and Taipei were closed for the day.
On Thursday, three Saudi Arabia-flagged oil supertankers carrying approximately 6 million barrels of crude exited the Strait of Hormuz, broadcasting their locations after weeks of silence, according to maritime analytics firm Kpler. The Hong Kong-flagged tanker Tong Lin Wan and the France-flagged LNG tanker Mraikh also passed through the waterway.
Despite these transits, traffic in the strait remains a fraction of pre-war levels, which typically saw 120–130 transits per day. More than 500 vessels are estimated to be waiting to exit the Gulf through the channel, which in peacetime carries about one-fifth of the global oil supply. Ship operators remain cautious about safety after nearly four months of threats and attacks. At least 46 attacks have been carried out against ships near the strait since late February, killing 14 seafarers, according to the International Maritime Organization. The waterway is also believed to contain an unknown number of Iranian naval mines, requiring mine-sweeping operations that could take weeks.
On Thursday, the International Association of Independent Tanker Owners (INTERTANKO) called for greater clarity on practical steps to ensure safe passage. "Without clarity on these issues, ships will be unsure whether to transit the Strait of Hormuz," said Managing Director Tim Wilkins. "The safety and security of seafarers have been uppermost in their minds, and no one wishes to jeopardize that safety-first approach when things appear to be moving in the right direction."