Oil prices edged higher on Friday as rising tensions between the United States and Iran kept traders focused on the risk of supply disruptions in the Middle East.
Brent crude climbed $1.05, or 1.25 percent, to $85.28 a barrel by 0118 GMT, while US West Texas Intermediate (WTI) crude gained $1.03, or 1.3 percent, to $79.98 a barrel. The rebound wiped out losses from the previous session.
Both benchmark contracts are heading for strong weekly gains. Brent is up nearly 12 percent this week and is on course for a third straight weekly increase. WTI has also surged about 12 percent and is set for its second consecutive weekly rise.
The latest gains came after fighting between Washington and Tehran intensified despite a ceasefire agreement reached last month. The United States launched two major waves of air strikes on Wednesday, mainly targeting sites near Iran’s southern coast, before carrying out more strikes on Thursday.
US Central Command said its forces had begun another round of attacks for the sixth consecutive night, saying the operation was aimed at weakening Iran’s military capabilities.
Iran has responded with missile and drone attacks targeting US military facilities in neighbouring countries, including a large air base in Jordan.
The conflict has also raised fears over global energy supplies. According to Reuters sources, Iran has instructed its Houthi allies to be ready to disrupt shipping through the Red Sea if US strikes hit Iranian power infrastructure. The Strait of Hormuz, a key route for global oil exports, is already facing reduced flows because of the ongoing conflict.
The International Energy Agency warned that the situation remains a serious concern for energy markets.
“Oil security is still a critical issue,” IEA Executive Director Fatih Birol said during an event in Washington on Thursday, adding that he would remain worried if conditions failed to improve in the coming weeks.
Market analysts at IG said WTI crude could move into the mid $80 range if prices continue to hold above support in the mid $70s.
Separately, Trump Media & Technology Group launched a paid data service offering banks and trading firms faster access to posts from influential Truth Social accounts, including those of US President Donald Trump, whose comments have frequently influenced oil market sentiment.
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