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Oil Rises Amid Escalating Tensions Ahead of Iran's Response to US Proposal

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-- Crude oil prices rose Friday as tensions flared up again in the Middle East conflict ahead of Iran's expected response to a US proposal to end the war.

Brent crude futures advanced 1.3% to $101.34 per barrel, while West Texas Intermediate was last up 0.9% at $95.62.

US forces disabled three empty Iranian oil tankers that violated the American blockade in the Strait of Hormuz in the past three days, US Central Command said Friday.

The US and Iran traded fire Thursday in the narrow waterway.

US Secretary of State Marco Rubio expects Iran to respond to Washington's peace proposal on Friday, CNBC reported.

"We'll see what the response entails," Rubio told reporters in Rome on Friday, according to CNBC. "The hope is it's something that can put us into a serious process in negotiation."

The United Arab Emirates intercepted two ballistic missiles and engaged three drones fires by Iran, the UAE's Ministry of Defense said in a post on X on Friday. The development resulted in three injuries.

"While tensions have escalated, the US has signaled no immediate intent to intensify the conflict and is reportedly still awaiting Iran's response to a proposal to reopen the trade route," ING Bank Head of Commodities Strategy Warren Patterson said in a note.

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