BY COMFORT OGBONNA
Oil prices climbed on Friday and remained on track for weekly gains as renewed concerns over possible supply disruptions in the Middle East pushed investors to reassess risks in one of the world’s most important energy-producing regions.
Brent crude futures increased by 19 cents, or 0.25%, to $76.49 a barrel by 0319 GMT, while U.S. West Texas Intermediate (WTI) crude rose 19 cents, or 0.26%, to $72.27 per barrel. For the week, Brent crude was headed for a gain of around 6%, while WTI was expected to rise approximately 5%.
The market rally was driven largely by uncertainty surrounding shipping activity through the Strait of Hormuz, a critical energy route connecting the Persian Gulf with global markets. The waterway, which normally handles a significant share of the world’s oil and natural gas shipments, has seen traffic sharply reduced following renewed military clashes between the United States and Iran.
“Prices have moved lower from the highs reached earlier in the week, but a significant risk premium remains because transit through the Strait of Hormuz has slowed to nearly a standstill, with no clear timeline for a full reopening,” said Vandana Hari, founder of energy analysis firm Vanda Insights.
Despite the supply concerns, oil prices have not surged further because markets continue to hold some hope that Washington and Tehran could return to diplomatic discussions and avoid a wider escalation. Expectations of a potential negotiated solution have helped limit gains in crude prices.
The latest tensions followed renewed military exchanges between the two countries. Iranian forces launched attacks on U.S. military facilities in Gulf countries after American strikes targeted locations inside Iran, putting additional pressure on a fragile ceasefire that had lasted for several weeks.
Iranian media also reported explosions in several parts of southern Iran, including areas near Bushehr, home to one of the country’s nuclear facilities. The developments increased concerns that the conflict could expand and create further risks for regional energy infrastructure.
The escalation occurred as Iran held funeral ceremonies for its former supreme leader, Ayatollah Ali Khamenei, whose death during the conflict had already intensified political tensions and triggered large public gatherings across the country.
The Strait of Hormuz has become a central focus for energy markets because it previously carried roughly 20% of global oil and gas supplies before the conflict disrupted normal operations. Any prolonged interruption to shipping through the waterway could create significant challenges for global energy markets and increase prices for consumers and businesses.
Shipping data indicated that tanker movement through the strait remained extremely limited on Thursday as vessel operators evaluated security risks following recent attacks. The slowdown came after Iran targeted a Qatari liquefied natural gas vessel leaving the waterway near Oman, further increasing concerns among shipping companies.
However, oil markets received some reassurance after U.S. President Donald Trump said he did not believe the renewed fighting would lead to a return of a broader conflict. He suggested that any further escalation would be resolved quickly.
Analysts also pointed to the U.S. decision not to target Iran’s energy infrastructure as a factor limiting market anxiety. Daniel Hynes, senior commodity strategist at ANZ, said investors gained confidence from the administration’s approach and comments indicating that Washington did not expect a return to a full-scale war.
Although crude prices remain supported by geopolitical risks, traders are closely monitoring developments in the Middle East, particularly the situation around the Strait of Hormuz. Any further disruption to shipping or escalation in military activity could create additional pressure on global oil supplies and potentially push prices higher.
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