Oil prices held near one-month highs on Friday, with Brent crude futures trading above $93 a barrel and on track for a second consecutive weekly gain as geopolitical risks in the Middle East intensified.
Brent crude futures rose 0.2% to $93.98 a barrel by 08:59 ET, while U.S. West Texas Intermediate crude futures edged up 0.1% to $86.89 a barrel. The Brent contract was poised to close the week with a gain of more than 5%, extending its upward momentum from the previous session.
The market’s strength reflected mounting concerns over potential supply disruptions tied to escalating tensions between the U.S. and Iran. U.S. Treasury Secretary Scott Bessent said on Thursday that Iran would face the "toughest sanctions in history" if it failed to comply with Washington’s demands. President Donald Trump also threatened severe economic consequences for countries continuing to trade with Tehran, reinforcing pressure on global oil markets.
Analysts at Deutsche Bank noted in a client note that "worries of an energy shock are continuing to permeate markets," as the U.S. maintains a naval blockade against Iran and Iran signals it will keep the Strait of Hormuz effectively closed until the terms of an expired June interim peace deal are met. Shipping data indicated commercial traffic through the Strait of Hormuz remains at a fraction of pre-conflict levels, underscoring the vulnerability of global oil supply routes.
Iran has largely dismissed the U.S. threats, with Chinese buyers continuing to purchase Iranian crude despite the warnings. The standoff has kept geopolitical risk premiums elevated, supporting oil prices even as market participants monitor the evolving diplomatic and military dynamics in the region.
