HOUSTON [Agency Report]: Crude oil prices moved higher on Friday as renewed security threats to shipping in the Strait of Hormuz and escalating tensions between the United States and Iran intensified concerns over global energy supplies.
Brent crude futures climbed 80 cents, or 0.92%, to $87.87 a barrel by 1548 GMT, while U.S. West Texas Intermediate (WTI) crude gained 43 cents, or 0.53%, to $81.69 a barrel. The gains left Brent on course for a weekly rise of about 5.09%, with WTI advancing roughly 4.37% over the week.
Market participants said the latest developments suggest that any near-term easing of geopolitical tensions remains unlikely, keeping a risk premium firmly embedded in oil prices.
The latest escalation followed comments from Washington indicating that the United States could continue its naval blockade of Iran indefinitely while stepping up economic pressure after ceasefire negotiations failed to make progress.
Treasury Secretary Scott Bessent said the administration was preparing additional measures against Tehran, stating, “Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation of a country.”
Analysts said those remarks significantly reduced expectations that normal shipping activity through the Strait of Hormuz would resume anytime soon.
The strategically important waterway, which handled roughly one-fifth of global oil and liquefied natural gas supplies before military operations involving the U.S. and Israel against Iran began in late February, has seen shipping activity slow below the monthly average as competing claims over control of the passage continue.
Adding to market anxiety, the United Arab Emirates said two vessels operated by the state-owned Abu Dhabi National Oil Company (ADNOC) were attacked while transiting the Strait of Hormuz on Thursday. The UAE condemned the incident, describing it as an Iranian attack.
Energy market analysts said the tanker attacks provided the immediate catalyst for Friday’s rise in crude prices, reinforcing fears that regional instability could disrupt one of the world’s most critical energy transport corridors.
Supply concerns were also amplified by developments in Russia, where crude exports from the Sheskharis terminal at the Black Sea port of Novorossiysk were suspended following a drone attack, according to sources familiar with the matter. The disruption at one of Russia’s major export facilities added further uncertainty to global supply.
Despite the bullish geopolitical backdrop, traders continued to weigh signs of weakening demand.
Recent forecasts from OPEC pointed to slower global oil demand growth, while U.S. government data showed crude inventories posted their largest weekly increase in more than three and a half years.
Some analysts believe those fundamentals could eventually exert downward pressure on prices.
They noted that recent assessments from the International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) indicate oil storage levels remain stronger than many had anticipated, suggesting that supply availability has so far held up better than expected despite mounting geopolitical risks.
