Pakistan, Aug. 7 -- Oil prices extended gains on Friday as uncertainty over the Strait of Hormuz continued to worry global energy markets. Investors remained cautious despite ongoing diplomatic efforts to restore normal shipping.

Read More: Crude oil prices drop on Hormuz developments

Brent crude futures rose 1.2% to $83.48 per barrel. Meanwhile, US West Texas Intermediate crude increased 1.1% to $78.84 per barrel. The market also built on strong gains from Thursday. Oil prices had jumped more than $3 per barrel after reports of possible new restrictions in the strategic waterway.

Iran, working with Oman, proposed new rules for ships using the Strait of Hormuz. The plan could ban vessels considered hostile and impose heavy fines on rul...