Oil prices edged higher on Friday as escalating hostilities between the United States and Iran raised concerns over global energy supplies. Market sentiment was also affected by reports that Iran asked its Houthi allies to prepare for a possible closure of the Red Sea export route. The renewed tensions have increased fears of disruptions to key oil shipping lanes.
Brent crude futures rose 0.08% to $84.30 a barrel, while US West Texas Intermediate (WTI) gained 0.2% to $79.11 a barrel. Both benchmark contracts have climbed nearly 12% this week, with Brent heading for a third straight weekly gain and WTI on course for its second consecutive weekly increase.
Read more: Petroleum prices likely to rise in next review
Analysts said the growing risk of disruptions in both the Strait of Hormuz and the Red Sea has added a geopolitical premium to oil prices. KCM Trade’s chief market analyst Tim Waterer said the potential closure of another major export route was complicating the global oil market outlook. Technical analysts also suggested WTI could move into the mid-$80 range if current support levels hold.
Meanwhile, military tensions intensified after the United States launched another wave of strikes against Iranian targets for a sixth consecutive night. Iran responded with missile and drone attacks targeting US military facilities in neighbouring countries. Qatar also reported intercepting an Iranian missile attack, adding to concerns over regional security.
Read more: Oil prices climb as Middle East tensions intensify
The International Energy Agency warned that energy security remains a major concern if the conflict continues. Analysts said any disruption to shipping through the Strait of Hormuz or the Red Sea could tighten global oil supplies further. Markets are expected to remain volatile as investors closely monitor developments in the Middle East.