• Oil prices jumped significantly following US-Iran clashes in the Strait of Hormuz.
• West Texas Intermediate crude rose 2.58% to $97.26 per barrel amid renewed tensions.
• Brent crude prices also increased, reaching levels above $100 per barrel.
• Trading activity suggests cautious optimism despite the volatile situation in the region.

Oil prices surged on Friday following renewed hostilities between the United States and Iran in the critical Strait of Hormuz, where both nations exchanged fire. West Texas Intermediate crude prices rose by as much as 2.58%, trading at $97.26 per barrel, reflecting a significant recovery as the market reacted to escalating tensions, according to Reuters and Channel News Asia.

Brent crude also saw a notable increase amidst the tensions, rising as much as 7.5% during volatile trading sessions, peaking at $103.70 before settling around $101 per barrel. The ongoing conflict has raised concerns about oil supply disruptions since approximately 20% of global oil shipments transit through this vital waterway, according to BBC and Al Jazeera.

The US military conducted retaliatory strikes after Iranian forces reportedly attacked US Navy vessels in the strait, claiming these actions violated the recently declared ceasefire. Tensions have escalated since Iran threatened to retaliate against US actions in the region, further complicating any potential diplomatic resolutions and affecting global oil market sentiment, according to India Times and BBC.