Oil prices surged significantly on Friday, with Brent crude trading around $84.79 per barrel and West Texas Intermediate at approximately $79.78 per barrel. This marks the largest weekly increase for both benchmarks since late April, with gains exceeding 11% this week. The escalation in fighting between the United States and Iran has intensified concerns about supply disruptions in the oil market.
The U.S. military completed its sixth consecutive night of airstrikes targeting Iranian military logistics and maritime capabilities. U.S. Central Command (Centcom) reported that over 50,000 U.S. service members are currently active in the Middle East, ready to respond to threats. The airstrikes have aimed at degrading Iran’s military infrastructure to diminish its potential to disrupt oil shipments.
In retaliation, Iran has begun its own offensive, striking U.S. facilities in the region for the first time directly in Syria. The exchange of military actions raises alarms about the security of the Strait of Hormuz, through which approximately 20% of the world's oil passes. Recent developments indicate a complete collapse of a fragile ceasefire established in June.
The reimposition of a naval blockade on Iranian ports has markedly reduced vessel traffic through this critical waterway. Furthermore, reports suggest that Iran has instructed Yemen’s Houthi forces to prepare for potential actions to obstruct the Red Sea oil route, should the U.S. pursue strikes against Iranian infrastructure.
Analysts from Rystad Energy have noted that confidence in a possible limited agreement between the U.S. and Iran has weakened, although they still view it as a base case scenario. This uncertainty adds to the prevailing volatility in oil markets, reflected in the recent price movements.
This material is informational and does not constitute financial advice.
