U.S. and Iran Maintain Back-Channel Talks Despite Hormuz Attacks and Rising Oil Prices

The fragile ceasefire between the United States and Iran shows signs of collapse after renewed attacks on commercial vessels in the Strait of Hormuz. A U.S. official described the attacks as acts of terrorism while stating that technical talks continue. Iranian officials have not publicly confirmed ongoing negotiations.

Iran held the burial of its supreme leader on Thursday at one of the holiest sites for adherents of Shia Islam. Attendees carried signs offering $100 million for the U.S. president's assassination. Experts said locals were paid to appear at the demonstrations.

The war began on Feb. 28 and has disrupted global fuel markets since then. Global fuel prices had eased during earlier pauses in fighting but face renewed upward pressure from continued attacks.

The International Energy Agency said Friday that a recovery in world oil demand is underway. The agency warned that renewed hostilities and disrupted tanker traffic through the Strait of Hormuz could alter its forecast for an oil market surplus next year.

"While the global oil market balance looks set to swing back to surplus towards the end of the year, the forecast hinges on the assumption that tanker flows through the Strait will gradually recover," the International Energy Agency said in a report.

" Crude oil stood above $72 a barrel on Friday morning, remaining on track for a weekly gain of nearly 5%, according to Trading Economics. The national average price for a gallon of regular gasoline rose to $3.88 on Friday, up from $3.85 the previous day, according to AAA.