Oil prices increased by approximately 2% after US President Donald Trump stated that he and China's Xi Jinping agreed that Iran must not possess nuclear weapons, reported Reuters.
This development comes amid ongoing concerns over ship attacks and seizures, even though Tehran reported that around 30 vessels had navigated the Strait of Hormuz.
At 06:42 GMT on 15 May, Brent crude oil futures had increased by $1.77, or 1.67%, reaching $107.49 per barrel (bbl), after earlier peaking at $107.99.
Meanwhile, US West Texas Intermediate (WTI) futures had risen by $2.13, or 2.11%, to $103.30/bbl.
Over the week, Brent has risen by nearly 6% and WTI by more than 7% amid uncertainty regarding the fragile ceasefire in the Iran conflict.
President Trump indicated he is losing patience with Iran and asserted that he and Xi Jinping agreed Tehran should not possess nuclear weapons and must reopen the Strait of Hormuz.
Although Xi did not publicly comment, China's Foreign Ministry released a statement regarding the talks.
The ministry said: “This conflict, which should never have happened, has no reason to continue.”
Trump also indicated that China was interested in purchasing oil from the US.
In developments around the Strait of Hormuz, a vessel was reportedly commandeered by Iranian forces off the United Arab Emirates (UAE) and directed towards Iranian waters.
Additionally, an Indian cargo ship transporting livestock from Africa to the UAE was sunk in Omani waters, which Indian officials condemned while confirming the rescue of all 14 crew members by the Omani coast guard, reported Reuters.
Iran's Revolutionary Guards claimed 30 ships have passed through the strait since Wednesday evening. Although this falls short of the pre-war daily average of 140, it remains a notable increase if verified.
The US had previously halted its assaults on Iran but initiated a blockade of its ports.
Efforts to resolve the conflict have reached an impasse, with Iran refusing to suspend its nuclear programme or abandon its enriched uranium reserves.
On a different note, the UK Maritime Trade Operations Centre reported that "unauthorised personnel" boarded a vessel anchored off the UAE's Fujairah port, steering it towards Iran.
