Crude oil prices posted modest gains on Friday as uncertainty emerged over the next phase of negotiations between the United States and Iran following a delay in US Vice President JD Vance’s planned trip to Switzerland.
The global benchmark Brent crude rose around 0.3 percent to trade above the $80-per-barrel mark. US benchmark West Texas Intermediate (WTI) crude also gained 0.5 percent to $76.28 per barrel during Asian trading hours.
Oil prices had declined earlier this week after the United States and Iran signed a peace memorandum aimed at ending the 15-week conflict in West Asia.
Vance was expected to travel to Switzerland to lead the next round of discussions with Iran. However, the White House said the trip had been delayed, without providing a reason for the change.
The peace memorandum paved the way for the reopening of the Strait of Hormuz, a critical shipping route that handles nearly 20 percent of the world’s oil supply from the Gulf region.
The waterway had remained largely disrupted since the conflict began in late February. Following the agreement, commercial shipping activity through the strait has resumed.
The document, titled the “Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran,” was signed by US President Donald Trump and Iranian President Masoud Pezeshkian on Wednesday.
Under the agreement, Iran committed to using its best efforts to ensure the safe passage of commercial vessels through the Strait of Hormuz without imposing additional charges.
The memorandum also outlines a framework to end hostilities across multiple fronts, including Lebanon. However, Israel has indicated that it will continue military operations against Hezbollah, potentially creating new challenges for the broader peace process.
According to Al Jazeera, the Israeli military acknowledged carrying out several strikes in southern Lebanon, stating that the operations were in response to alleged ceasefire violations by Hezbollah.
The agreement provides a 60-day window for the United States and Iran to negotiate a final peace deal, with the possibility of extending the timeline if required.
