WTI crude oil futures fell toward $64 per barrel on Friday but remained on track for their best month since July 2023, supported by a rising geopolitical risk premium. Concerns persist on renewed US–Iran tensions, after US President Donald Trump called on Iran to engage in nuclear talks, while Tehran warned of retaliation. Market attention is focused on the potential impact of these tensions on shipping through the Strait of Hormuz, a narrow passage between Iran and the Arabian Peninsula that is critical for global energy flows, with tankers transporting crude oil and LNG passing through it daily. Earlier this month, oil prices were also supported by geopolitical tensions in Venezuela, production outages in Kazakhstan, US production freeze-offs, and tightening US restrictions on purchases of Russian oil, factors that have pushed prices higher so far this year despite expectations of oversupply.
