WTI crude futures rose above $103 per barrel on Friday and were on track for a weekly gain of more than 8%, as risks in the Strait of Hormuz persisted amid stalled US-Iran peace talks.

President Donald Trump on Thursday warned Iran to make a deal or face “annihilation,” saying his patience with Tehran was running out.

His remarks came even as Iran said that around 30 ships had crossed the Strait.

The US and Iran failed to agree on a US-drafted peace proposal earlier this week, leaving the key waterway largely closed.

Optimism for a lasting ceasefire has also faded.

Meanwhile, the IEA reported that crude and fuel flows through the Strait fell by around 4 million bpd in March and April, warning that the global oil market could remain materially undersupplied through October even if the conflict is resolved next month.

Separately, Trump said China wants to buy oil from the US amid persistent challenges in reopening the Strait, with ship attacks and seizures reported this week.
Source: Trading Economics