Global oil prices rose by up to 3 percent on Friday following renewed tensions between the United States and Iran in the Hormuz Strait. Brent crude futures increased by 3 percent during trading but settled 1.23 percent higher at $101.29 per barrel by the end of the day. Meanwhile, US West Texas Intermediate (WTI) futures rose by 0.64 percent to $95.42 per barrel.

Market analysts cited by Reuters said that despite ongoing uncertainty, there was strong belief in the possibility of an agreement between Washington and Tehran to prevent further conflict. John Kilduff, a partner at Again Capital, noted that the market was at a crossroads, either approaching a major diplomatic breakthrough or renewed confrontation.

According to the report, market sentiment suggests that a preliminary understanding could soon be reached, with a 30-day window expected for the two nations to finalize a comprehensive accord.