Crude oil futures were set for a second straight weekly gain on Friday as geopolitical risks in the Middle East intensified following threats of sweeping U.S. sanctions against Iran and ongoing Ukrainian drone strikes on Russian refining facilities.
Brent crude traded at $93.50 per barrel, while West Texas Intermediate (WTI) stood at $86.43 per barrel. The upward momentum reflects mounting concerns over potential supply disruptions in a region critical to global oil flows.
U.S. President Donald Trump said on Wednesday the administration is preparing an "economic warfare and isolation on an unprecedented scale" against Iran, while Treasury Secretary Scott Bessent described the measures as a "one-two punch" combining a blockade with the "toughest sanctions in history."
"It is going to work in Iran and we are going to collapse this regime," Bessent said, according to Reuters. Details of the proposed economic pressure campaign are expected to be unveiled on Monday, with the U.S. seeking support from China, the world's largest importer of Iranian crude.
China's potential backing remains uncertain, as Beijing has repeatedly opposed sanctions as ineffective and continues to purchase Iranian oil despite existing restrictions. Analysts note that Beijing's stance complicates efforts to isolate Tehran economically.
"Both sides are dug in but lacking the luxury of time to play the waiting game, against a backdrop of crude prices grinding unerringly higher," IG analyst Tony Sycamore said, as quoted by Reuters.
Credit rating agencies also flagged upside risks to oil prices. BMI and Fitch Ratings indicated they would revise their oil price outlooks upward, citing strong potential for international benchmarks to rise further amid the escalating conflict in the Persian Gulf.
