New Delhi, May 16 (IANS) Global oil prices surged sharply this week, with benchmark crude contracts ending Friday’s session more than 3 per cent higher, after renewed tensions between the United States and Iran dampened hopes of a near-term breakthrough over the Strait of Hormuz — one of the world’s most critical oil shipping routes.

Brent crude futures settled at $109.26 a barrel, gaining $3.54 or 3.35 per cent on Friday, while U.S. West Texas Intermediate (WTI) crude ended at $105.42 a barrel, up $4.25 or 4.2 per cent.

For the week, Brent advanced 7.84 per cent, while WTI jumped 10.48 per cent, as markets remained nervous over the fragile ceasefire in the Iran conflict and the possibility of disruptions to global energy supplies.

Investor sentiment weakened after Iranian Foreign Minister Abbas Araqchi said Tehran has “no trust” in the United States and would participate in negotiations only if Washington demonstrated seriousness.

He also stated that Iran remains prepared both for renewed conflict and diplomatic engagement.

The remarks came as US President Donald Trump signalled growing frustration with Iran and reiterated that Tehran cannot be allowed to develop a nuclear weapon.

Trump also said Iran must reopen the Strait of Hormuz, through which nearly one-fifth of the world’s oil and liquefied natural gas supplies pass.

The Strait serves as the primary export route for major Gulf producers including Saudi Arabia, Iraq and Qatar, making any disruption a major concern for global energy markets.

Market participants had initially hoped that the ceasefire between Iran and its rivals could pave the way for smoother shipping movement in the region.

However, the latest rhetoric from both Washington and Tehran has sharply reduced expectations of a quick reopening of the Strait, increasing fears of prolonged supply risks.

During his visit to China, Trump said he had agreed with Chinese President Xi Jinping that Iran should not possess nuclear weapons.

While Xi did not publicly comment on the issue, China’s foreign ministry released a statement saying the conflict “should never have happened” and “has no reason to continue.”

Tensions between the US and China also resurfaced during the visit, after Xi reportedly warned that bilateral ties could face serious risks if the Taiwan issue remains unresolved.

–IANS

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