Oil prices are heading for their strongest weekly performance since April, driven by escalating tensions between the United States and Iran that have disrupted shipping through the Strait of Hormuz. Both major crude benchmarks extended their gains into a fourth consecutive trading session on Friday morning.
International benchmark Brent crude rose 1 percent to $85.06 per barrel in Asian trading, while US benchmark West Texas Intermediate climbed 1.2 percent to $79.88 per barrel. The moves put crude on track for a weekly jump of roughly 12 percent, reversing significant losses from recent weeks.
Earlier this week, Brent briefly climbed above $86 a barrel as Washington and Tehran ramped up their confrontation. The US launched fresh military strikes on Iranian targets overnight, prompting the price spike.
Tensions spiked after attacks on two UAE-managed oil supertankers transiting the Strait near Oman, an area within the US naval security corridor. These incidents have effectively stalled the gradual recovery in tanker traffic that had begun following earlier diplomatic outreach.
Instead, shipping traffic through the waterway has slowed sharply as vessel operators reassess security risks and insurers scrutinise voyages through the region more closely. The latest hostilities include nightly US military strikes on Iranian targets and the reinstatement of a US naval blockade in the Gulf of Oman.
Washington designed the blockade to restrict Iranian crude exports as part of its broader effort to limit Tehran's oil export capabilities. The conflict deepened on Thursday when US forces struck and disabled an Iran-linked sanctioned tanker near Kharg Island, Iran's main crude export terminal.
Market participants view this move as a sign that Washington may be expanding its enforcement activities beyond the Strait of Hormuz itself. According to the US Central Command (CENTCOM), American forces launched precision strikes early Friday against dozens of Iranian military installations for the sixth straight night.
The targets included coastal surveillance systems, air defence positions, logistics facilities and maritime infrastructure, CENTCOM said in a statement. "At the Commander in Chief's direction, CENTCOM is further degrading Iranian military capabilities and holding Iran accountable for recent attacks on commercial shipping," the military noted.
The breakdown of negotiations between Washington and Tehran continues to erode hopes for a lasting ceasefire. Analysts say the collapse of diplomatic efforts is fuelling concerns over crude supply from the Middle East and adding significant geopolitical risk to oil markets.
The Strait of Hormuz remains the world's most critical oil transit route, handling nearly 20 percent of global oil consumption and a substantial portion of global liquefied natural gas exports. Any sustained disruption to shipping through the waterway poses serious risks to global energy supplies.
