Oil prices inched up on Friday after the United States (US) and Iran stepped up attacks across the Gulf, with their broken truce limiting oil flows out of the Strait of Hormuz and with Tehran asking the Houthi organisation to stand ready to shut the Red Sea export route.
Brent crude futures rose 7 cents, or about 0.08%, to $84.30 a barrel, while US West Texas Intermediate (WTI) futures gained 16 cents, or 0.2%, to $79.11 a barrel.
Both benchmark contracts have climbed nearly 12% this week, with Brent on track for a third consecutive weekly gain and WTI on pace for a second weekly gain.
“The potential threat of the Red Sea becoming another major supply disruption point is further complicating the global oil outlook,” said Tim Waterer, Chief market analyst at KCM Trade.
He noted the “dual-risk scenario” was keeping a geopolitical premium embedded in both benchmarks.
For the first time since a memorandum of understanding paused fighting last month, the US launched two major waves of air strikes in a single day on Wednesday, mostly at targets near Iran’s southern coast. It kept firing on Thursday.
Meanwhile, Qatar’s defence ministry said its armed forces thwarted an Iranian missile attack early on Friday, while the interior ministry said a child was injured by shrapnel resulting from interception operations.
“Oil security is still a critical issue,” International Energy Agency Executive Director Fatih Birol said on Thursday at a Council on Foreign Relations event in Washington.
–Reuters–
