Washington, DC – Oil prices rose on Friday, on track for their biggest weekly gain since mid-July. This came amid growing concerns about global supply from the Middle East due to escalating tensions and hostilities between the United States and Iran.
Futures rise, posting huge weekly gains
Brent crude futures rose 15 cents, or 0.2 percent, to $95.67 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures gained 26 cents, or 0.3 percent, to $91.56. For the week, Brent gained 7.1 percent, while WTI jumped 9.8 percent. Both are on track for their biggest weekly and quarterly gains since the week ending July 20. These increases come as the conflict, which erupted following U.S.-Israeli strikes in late February, enters its seventh month. There have also been some of the most intense attacks since July, resulting in dozens of civilian deaths and injuries.
Mutual threats and the Strait of Hormuz crisis
Israeli Defense Minister Yisrael Katz reiterated his threats that Israel would cripple Iranian military and civilian infrastructure, including vital energy facilities. Meanwhile, US Vice President J.D. Vance affirmed that Washington categorically refuses to hold any talks with Tehran before it ceases its attacks on commercial vessels in the Strait of Hormuz.
Meanwhile, Iran tightened its measures by adding more ships to its list of non-compliant vessels subject to fines, confiscation, and detention upon attempting to cross. Only Iraqi ships were exempted, being among the few permitted to pass. The escalating tensions were tempered by Russian President Vladimir Putin’s announcement of a potential path to resolving the Ukraine war with the involvement of Washington and Beijing.
