Oil prices rose on Friday, putting crude benchmarks on track for their steepest weekly gains since mid-July, as escalating tensions and renewed hostilities between the United States and Iran heightened concerns over oil supply disruptions in the Middle East.
At 1:00 a.m. GMT, Brent crude futures were up 15 cents, or 0.2%, at $95.67 a barrel, while U.S. West Texas Intermediate (WTI) futures rose 26 cents, or 0.3%, to $91.56 a barrel.
On a weekly basis, Brent was up 7.1%, while WTI had gained 9.8%, putting both benchmarks on course for their strongest weekly increases since the week ending July 20.
U.S. attacks this week that killed and wounded dozens of people, including Iranian civilians, marked the fiercest clashes between the two countries since July. The conflict, which began with U.S.-Israeli strikes at the end of February, has now entered its seventh month.
Israeli Defence Minister Israel Katz renewed warnings that Israel would “cripple” Iran’s military and civilian infrastructure, including energy facilities.
U.S. Vice President JD Vance said on Thursday that Washington does not plan to hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of Hormuz, a key global oil transit route.
However, gains in oil prices were partly limited after Russian President Vladimir Putin said there was still a path toward a deal to end the war in Ukraine, adding that both the United States and China were prepared to support a peace settlement.
Meanwhile, Iran has expanded its list of vessels it considers non-compliant and that could face fines, confiscation or detention if they attempt to transit the Strait of Hormuz. Iraqi vessels remain among the few ships Tehran has cleared to pass through the strategic waterway.
Iraq increased its oil exports to around 2.34 million barrels per day (bpd) in August, up from approximately 1.35 million bpd in July, according to two Iraqi energy officials. September exports are also expected to rise, as heavy discounts and Iranian approvals for Iraqi tankers have encouraged buyers.
Source: The Economic Times
