WTI Rises to $84.83 Amid Renewed Hormuz Tensions

Oil prices moved higher on Friday, with West Texas Intermediate (WTI) crude rising $1.24 to settle at $84.83 per barrel. Brent crude gained $1.32 to reach $90.35, according to live price data. The gains come as geopolitical risk premium returned to the market following a week of volatile trading driven by events in the Strait of Hormuz.

The week opened with a sharp sell-off as diplomatic efforts, including a proposal from Oman for regional management of the critical waterway, suggested a potential resolution to supply disruptions. According to OilPrice.com, September WTI futures had fallen as much as 7.02% week-to-date by late Thursday. However, prices rebounded after Iran rejected the Omani plan and military exchanges resumed, including U.S. strikes on Revolutionary Guard targets inside Iran early Thursday. This reversal showed that earlier selling was "built on diplomatic hope, not a restoration of crude flows," OilPrice.com reported.

For Bakken producers, the headline WTI price is tempered by the regional differential. Bakken crude traded at a discount of $3.42 per barrel versus WTI on Friday, putting its effective price near $81.41. The sustained geopolitical uncertainty supports a firmer overall price floor, but the local differential impacts netback for operators in the Williston Basin.

Supporting the complex, U.S. gasoline prices are also showing strength. Rigzone reported that the latest U.S. Energy Information Administration update indicates a rising price trend for U.S. regular gasoline, published on July 30. Stronger downstream fuel demand typically provides additional support for crude feedstock prices.

The ongoing situation underscores the market's sensitivity to Hormuz-related supply threats. With a significant portion of global seaborne oil trade passing through the strait, any prolonged closure or sustained conflict would have immediate implications for global benchmarks, indirectly benefiting landlocked production like that from the Bakken which relies on pipeline and rail export routes.

The price action leaves WTI sharply lower for the week despite Friday's gains, but the resurgence of the risk premium suggests traders are pricing in continued volatility and supply uncertainty. For North Dakota operators, the elevated but volatile price environment requires careful hedging and management, with the Bakken differential remaining a key factor in wellhead economics.