Oil prices slipped on Friday after strong gains in the previous session, but remained on course for a second consecutive weekly increase as the ongoing conflict involving the United States, Israel and Iran continued to fuel concerns over global crude supplies.
Brent crude futures were down 34 cents, or 0.4 per cent, at $93.44 a barrel by 0646 GMT, while US West Texas Intermediate (WTI) crude fell 44 cents, or 0.5 per cent, to $86.76 a barrel. Despite Friday’s decline, both benchmarks have posted solid gains this week, with Brent rising more than 7 per cent and WTI climbing over 8 per cent to their highest levels since July 24.
The market remains focused on supply risks across the Middle East, where uncertainty has intensified after the expiry of a previous peace agreement between the US and Iran. With no signs of fresh negotiations, investors fear disruptions to exports from major producers including Saudi Arabia, Iraq, the United Arab Emirates and Kuwait could continue.
IG market analyst Tony Sycamore said both sides remained firmly positioned despite growing pressure from rising oil prices.
BMI, a Fitch Solutions company, said it is reviewing its Brent crude forecast and believes the risks are increasingly tilted towards higher prices. It pointed to continued disruption in the Strait of Hormuz, where Iran’s closure of the waterway and the US naval blockade have limited oil flows. Shipping has also been affected in the Red Sea by Houthi attacks.
According to ship tracking firm Kpler, only seven commodity vessels passed through the Strait of Hormuz on Thursday, around half the number recorded a day earlier. Before the conflict, the route carried roughly one fifth of global oil consumption.
Adding to market uncertainty, US President Donald Trump this week warned of severe economic action against Iran and countries offering support to Tehran. The UAE has also suspended all financial and economic dealings with Iran, underlining the growing strain across the region.
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