Oil prices headed for weekly gains as of Friday, despite the U.S. issuing a 30-day license for countries to buy Russian oil and petroleum products at sea.
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Oil prices jumped over 2% on Tuesday as uncertainty lingered over a U.S.-led coalition to protect shipping through the Strait of Hormuz.
International benchmark Brent crude gained 2.45% to $102.57 per barrel, while the U.S. West Texas Intermediate rose 2.51% to $95.85 per barrel as of 8:44 p.m. ET.
U.S. Treasury Secretary Scott Bessent said Monday that the U.S. was allowing Iranian oil tankers to pass through the Strait of Hormuz.
The Wall Street Journal reported that the U.S. would soon announce a coalition of countries to escort ships through the Strait, citing officials.
Oil prices year-to-date
However, President Donald Trump suggested Monday that the coalition was not fully in place as he urged other countries to get involved.
Trump added that he was frustrated some nations were reluctant to participate.
"Some are very enthusiastic, and some are less than enthusiastic," Trump told reporters at a press conference. "And I assume some will not do it. I think we have one or two that will not do it that we've been protecting for about 40 years at tens of billions of dollars."
The U.S. has been urging allies to send military forces to protect tanker traffic through the strait. Ship movements through the vital shipping route have plunged after Iranian attacks, fueling one of the largest disruptions to global oil supply in history.
"The sheer scale of the oil supply disruption makes it difficult for the market to find an adequate solution," said Warren Patterson, head of commodities strategy at ING.
"While the U.S. administration has touted the idea of insurance guarantees and naval escorts, neither has materialized yet," Patterson noted.
He added that escorting commercial vessels through the Strait of Hormuz would leave naval ships vulnerable to attack, so the U.S. may hold off from such action until it feels that Iran's ability to launch attacks on vessels has been eroded.
Located between Oman and Iran, the strait functions as a vital artery for the global oil trade. Roughly 13 million barrels per day passed through it in 2025, representing about 31% of all seaborne crude flows, according to energy consulting firm Kpler.
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