Oil prices moved higher on Friday after a turbulent trading session, as investors continued to monitor geopolitical developments surrounding Iran and the United States. Despite a temporary ceasefire, uncertainty over the region’s stability and the future of key shipping routes kept energy markets on edge.

Brent crude futures for July advanced 0.9% to trade near $111.40 per barrel, while U.S. West Texas Intermediate (WTI) crude gained modestly, hovering above $105.00. The gains followed Thursday’s dramatic session, when front-month Brent surged to a four-year high before retreating sharply by the close.

Geopolitical Tensions Continue to Support Oil

Market sentiment remains heavily influenced by the fragile ceasefire between Washington and Tehran. Although direct military exchanges have paused, traders remain cautious as negotiations over Iran’s nuclear program and regional security continue.

The White House stated that hostilities between the United States and Iran had effectively ended following a ceasefire reached earlier this month. Administration officials argued that the cessation of direct conflict means the 60-day deadline under the War Powers Resolution no longer applies.

This interpretation could allow President Donald Trump to avoid seeking immediate congressional authorization for military operations linked to the recent conflict.

Hormuz Remains the Market’s Biggest Concern

Even with the ceasefire in place, the Strait of Hormuz remains a focal point for global markets. The strategic waterway handles roughly one-fifth of the world’s oil supply, making any disruption a major threat to energy security.

Tehran has indicated that normal shipping conditions may not fully resume until broader sanctions and port restrictions are addressed. This has left traders pricing in a significant geopolitical risk premium.

Analysts note that any renewed military action or prolonged shipping disruptions could quickly send crude prices substantially higher.

Markets Brace for Further Volatility

Reports that U.S. military planners have prepared contingency strike options have further elevated tensions. Meanwhile, Iranian officials have warned of severe retaliation should hostilities resume.

Investors are likely to remain highly sensitive to developments in the Middle East, particularly any headlines related to shipping lanes, military movements, or nuclear negotiations.

For now, oil markets continue to balance immediate supply concerns against hopes for a longer-term diplomatic resolution.