Brent crude oil prices closed higher on Friday after late-session buying driven by geopolitical concerns, ending the week with strong gains. Traders reacted to renewed uncertainty surrounding potential US military action and tensions with Iran. As a result, short-covering pushed prices upward near the close of trading. The market also recorded a weekly increase of more than five percent.
Brent settled at $71.76 per barrel, rising 10 cents, while West Texas Intermediate crude oil ended at $66.39 per barrel, slipping slightly by 4 cents. Throughout most of the session, both benchmarks traded lower as investors waited for developments in US-Iran relations. However, late buying activity reversed earlier losses. Consequently, Brent finished the week on a positive note despite daily volatility.
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Market analysts said traders balanced expectations of possible conflict with signs that a direct attack might not occur. They explained that uncertainty kept prices fluctuating during the week. Furthermore, investors closely monitored statements from US officials regarding nuclear negotiations with Iran. Therefore, energy markets reacted quickly to any new political signals.
In addition, concerns about supply levels influenced trading patterns across global oil markets. Reports showed that US crude inventories fell by nine million barrels, supported by higher refinery activity and exports. Meanwhile, discussions within OPEC+ suggested potential output adjustments starting in April. These supply factors added further complexity to price movements.
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Iran remains a key oil producer located near the Strait of Hormuz, a major transit route for global crude shipments. Approximately 20 percent of the world’s oil passes through this narrow waterway. Therefore, any conflict in the region could disrupt supply and raise prices significantly. Traders responded by increasing purchases of call options, betting on higher future values.
Despite recent gains, some analysts warned that global markets still face potential oversupply conditions later this year. Forecasts indicate that production levels may exceed demand unless output adjustments occur. As a result, energy investors continue to monitor geopolitical risks alongside supply data. Overall, oil prices remain sensitive to developments in diplomacy, production decisions, and global economic trends.