Oil prices rose on Friday after the United States and Iran exchanged fire in the Strait of Hormuz, raising fears that a fragile ceasefire between the two countries was breaking down.

Brent crude and U.S. West Texas Intermediate both climbed as tensions threatened disruption to one of the world’s most important oil shipping routes.

The flare-up came amid ongoing accusations from both sides and uncertainty over a possible U.S.–Iran peace proposal.

President Donald Trump insisted the ceasefire remained in place but warned Iran of further strikes if it did not agree to a nuclear deal, CNBC has reported.

Analysts said the situation is likely to keep oil markets volatile as the risk of renewed conflict persists.