Oil Prices Head for Weekly Gain as Middle East Tensions Threaten Global Supply

Post by : Saif

Global oil prices remained on track for solid weekly gains on Friday despite easing slightly during the session, as renewed tensions between the United States and Iran continued to raise concerns over crude oil supplies through the Strait of Hormuz.

Brent crude futures slipped 0.3% to $76.11 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 0.3% to $71.87 per barrel during early trading.

Despite the day's decline, Brent was heading for a weekly gain of around 6%, while WTI was set to rise approximately 5%, supported by persistent geopolitical risks.

Strait of Hormuz Disruptions Keep Markets on Edge

Market sentiment remains focused on the Strait of Hormuz, one of the world's most important oil shipping routes.

Recent military exchanges between Iran and the United States have significantly disrupted tanker traffic, with ship-tracking data indicating that vessel movements through the strait have slowed to a near standstill.

Before the conflict intensified, nearly 20% of global oil and liquefied natural gas (LNG) supplies passed through the strategic waterway each day.

Renewed U.S.-Iran Conflict Raises Supply Concerns

The latest escalation followed Iranian strikes on U.S. military facilities in the Gulf after American attacks on Iranian military sites.

Iranian media also reported explosions in several southern cities, including Bushehr, home to one of the country's nuclear power facilities.

Although there were no reports of new U.S. military strikes overnight, uncertainty over future developments continues to support higher oil prices.

IEA Warns Conflict Could Change Oil Market Outlook

The International Energy Agency (IEA) warned that continued fighting between the United States and Iran could alter its earlier forecast that global oil markets would move into a surplus next year.

Analysts say the prolonged disruption to shipping through the Strait of Hormuz could tighten global crude supplies if tanker traffic does not return to normal soon.

However, markets found some reassurance after U.S. officials avoided targeting Iran's energy infrastructure during recent military operations, reducing fears of an immediate and more severe supply shock.

Investors Closely Watch Regional Developments

Energy markets are expected to remain highly sensitive to developments in the Middle East.

Traders are closely monitoring diplomatic efforts, military activity and shipping movements in the Gulf region, as any further escalation could have a significant impact on global oil prices and energy security.

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