Key Takeaways
- Brent crude futures rose by 1.25% to $85.28 a barrel.
- US and Iran launched multiple air strikes, threatening oil flows in the Strait of Hormuz.
- Iran instructed Houthi allies to prepare for potential Red Sea route closure.
Oil prices have risen significantly amid escalating tensions between the United States and Iran. According to market data, Brent crude futures increased by 1.25% to $85.28 a barrel by 0118 GMT on Friday, while US West Texas Intermediate (WTI) futures climbed 1.3% to $79.98 a barrel, erasing losses from the previous session.
The conflict has intensified with both nations launching multiple air strikes in a single day. The United States initiated two major waves of attacks on Wednesday, targeting locations near Iran’s southern coast, and continued firing on Thursday. In response, Tehran countered with missile and drone strikes against US military bases in neighboring states, including a recent attack on an expanded air base in Jordan.
The situation has raised concerns over oil security, as both nations have threatened to disrupt key shipping routes. Iranian leadership has instructed its Houthi allies to be prepared to close the Red Sea oil route if US strikes target Iranian power infrastructure, according to Reuters reports. This development adds another layer of uncertainty to global oil markets.
International Energy Agency Executive Director Fatih Birol expressed worry about the situation during a Council on Foreign Relations event in Washington, stating that oil security remains a critical issue and should be monitored closely over the next few weeks.
Technical analysts noted that WTI could potentially test mid-$80s levels if it holds above key support at mid-$70s. The market is also keeping an eye on additional factors, such as Trump Media & Technology Group’s new data feed offering faster access to influential posts from Truth Social accounts, which can significantly impact oil prices.
The ongoing hostilities have led to a 12% increase in Brent crude futures and a second consecutive weekly gain for WTI. Analysts predict that the current situation could lead to further price volatility as both nations continue their confrontations.
