Israeli Prime Minister Benjamin Netanyahu on Thursday said he was seeking talks with Beirut, a day after the worst Israeli bombardment of the war killed more than 300 people in Lebanon. On Friday, Hezbollah responded by launching a missile at Israel, triggering air raid sirens including in Tel Aviv.
Meanwhile, U.S. President Donald Trump berated Iran on Truth Social for doing a "very poor job" of allowing ships through the strait. "That is not the agreement we have!" he wrote.
Before the war, one-fifth of global oil and gas shipments passed through Strait of Hormuz. On Thursday, traffic was well below 10% of normal volume as ships navigated both mines and bureaucracy, with each vessel requiring Iranian approval.
The strait's effective closure during the U.S. and Israel's six-week war with Iran has sent shockwaves through global markets as oil prices surged and energy supplies tightened.
In a sign the conflict is feeding cost pressure beyond the region, factory-gate prices in China rose for the first time in three and a half years in March, official data showed.
Brent crude rose 0.7% to $96.57 a barrel on supply fear, with Japanese Prime Minister Sanae Takaichi on Friday saying Japan plans to release 20 days' worth of oil reserves from May to ensure stable domestic supply.
Also in Japan, the Nikkei 225 rose 1.6% as shares in Fast Retailing set a record after the Uniqlo owner on Thursday reported a profit jump that beat market estimates.
In early European trade, pan-region futures were up 0.6%, German DAX futures were up 0.6% and FTSE futures were up 0.2%.
