Oil prices were heading for their strongest weekly gain since mid-July on Friday as renewed fighting between the United States and Iran heightened concerns over disruptions to Middle East energy supplies.
Brent crude futures rose 54 cents to $96.06 a barrel, while US West Texas Intermediate (WTI) crude gained 79 cents to $92.09. Brent was up about 7.1% for the week and WTI 9.8%, putting both benchmarks on course for their biggest weekly increases since the week ended July 20, according to Reuters.
The gains came after several days of renewed US-Iran exchanges around the Strait of Hormuz, the vital waterway through which a large share of global oil supplies passes. The escalation has revived fears that prolonged hostilities could disrupt crude flows from the Gulf, even as actual developments on the battlefield remained relatively contained.
The oil market has also been watching Washington for signs of a path towards de-escalation. US Vice President JD Vance said on Thursday that he could not provide a timeline for an end to the conflict or say when US fuel prices would return to pre-war levels, while arguing that the current confrontation should not be described as a conventional war.
Vance said Washington was also investigating a deadly strike on an Iranian wedding earlier this week. Reuters analysis by weapons experts found that the incident, which killed five people according to Iranian state television, likely resulted from a direct hit by a US munition. The US administration has not accepted responsibility for the strike.
Meanwhile, concern over the security of the Strait of Hormuz is spreading beyond the immediate participants in the conflict. South Korea said on Friday it was reviewing options, including possible military measures, to support freedom of navigation through the waterway, although no deployment decision had been made.
The prospect of a wider international effort to keep the strait open adds another layer of uncertainty for oil markets, particularly if the current confrontation persists.
