Crude futures climbed on Friday as traders weighed a prospective Iran-Oman agreement that would regulate ship movements through the strategic Strait of Hormuz, a chokepoint for roughly a fifth of global oil and LNG flows before the recent conflict disrupted shipping. Main Developments Brent crude rose 93 cents, or 1.14%, to $83.42 per barrel by 1:14 p.m. CDT (1814 GMT), while West Texas Intermediate gained 96 cents, or 1.24%, to $78.25. The uptick followed a Thursday settlement that saw futures jump more than $3 as Iran reviewed legislation to bar US and Israeli vessels from the waterway. Earlier in the week, prices had slipped as prospects for a diplomatic resolution seemed brighter, yet both benchmarks remain on track for weekly losses exceeding 9%. The market's focus now centers on whether any Iran-Oman pact would permit US-flagged or US-owned ships, or vessels bound for US ports, to pass through the strait, according to Andrew Lipow, president of Lipow Oil Associates. Read also: PSX Rally Stalls: KSE-100 Drops 347 Points on Profit-Taking Background The conflict between the US, Israel, and Iran, now five months old, began at the end of February and has disrupted normal energy flows through the Strait of Hormuz. Both Iran and Oman have reportedly agreed on the specific route ships would take through the strait between their territories, marking a potential step toward easing tensions. Negotiations, however, face significant hurdles. Iran is demanding transit fees of 5% to 7% of cargo value, while Oman proposes around 3%, and Washington insists on no fees at all. Four industry sources note that the deal may prove unworkable due to US sanctions and restrictive insurance clauses governing any payments. Why It Matters The outcome of these talks carries direct implications for global energy prices and supply security. As Lipow explained, prolonged supply disruptions force the world to draw down commercial reserves, amplifying price volatility. This week's developments also signal that hostilities between Iran and the US have not fully subsided, leaving the market on edge. For consumers and businesses, the stakes are high: any failure to reach a workable agreement could sustain elevated oil prices, while a successful deal might help stabilize markets and ease inflationary pressures. What's Next Traders will closely watch for formal ratification of the Iran-Oman route agreement and its specific terms, particularly how fees and vessel eligibility are resolved. The duration of the ongoing war remains a key uncertainty, as each week of disruption further depletes global reserves. Any breakthrough in negotiations could trigger a sharp price correction, while continued stalemate may keep prices elevated.