Oil futures extended weekly gains on Friday as escalating Middle East tensions kept supply risks elevated, with Brent crude holding near multi-week highs despite a modest pullback in U.S. benchmark prices.
Brent crude futures rose 4 cents to $93.82 a barrel by 0142 GMT, following a 2.4% advance in the prior session. The global benchmark has gained more than 7% over the past five trading days, reaching its highest level since July 24. U.S. West Texas Intermediate crude, meanwhile, slipped 6 cents to $86.78 a barrel after a 2.3% gain the previous day, with an 8% advance over the same five-day period.
The upward momentum reflects persistent concerns over supply disruptions in the Persian Gulf, where pre-war shipments through the Strait of Hormuz accounted for roughly one-fifth of global consumption. The waterway has seen sharply reduced traffic since the conflict between the U.S., Israel, and Iran intensified following the February 28 military strikes and the expiration of a prior peace deal this week.
Analysts note that both sides remain entrenched in the conflict, with crude prices continuing to climb despite the absence of formal negotiations. Tony Sycamore, analyst at IG, said the standoff leaves little room for delay. "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," he said.
U.S. President Donald Trump escalated rhetoric against Tehran on Wednesday, warning of "economic warfare and isolation on an unprecedented scale" if Iran receives support from any nation. The threat follows the United Arab Emirates' decision to suspend all financial and economic transactions with Iran until further notice. Trump's remarks underscore the growing risk of broader economic measures targeting countries facilitating trade with Tehran.
The conflict has already disrupted regional energy infrastructure, with Iranian attacks targeting facilities across the Middle East and a blockade of the Strait of Hormuz contributing to reduced shipping activity. On Wednesday, only nine vessels transited the waterway, a fraction of pre-war levels. Major producers in the region, including Saudi Arabia, Iraq, the UAE, and Kuwait, have faced indirect pressure as the war’s persistence curtails stable supply flows.
Casualties in the conflict have exceeded several thousand, while diplomatic efforts remain stalled. The expiration of the peace deal without renewed negotiations has left markets grappling with prolonged uncertainty over Persian Gulf energy routes and their broader implications for global oil supply.
