BY COMFORT OGBONNA
Oil prices climbed on Friday as renewed military strikes between the United States and Iran intensified concerns over global energy supplies, with a fragile ceasefire collapsing and threats emerging over key shipping routes in the Middle East.
Brent crude futures increased by 70 cents, or about 0.83%, to $84.93 a barrel by 0312 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 81 cents, or 1.03%, to $79.76 a barrel. The gains reversed losses from the previous trading session as investors reacted to growing geopolitical risks surrounding some of the world’s most important oil transit routes.
Both major oil benchmarks have surged nearly 12% this week, putting Brent on track for its third consecutive weekly increase and WTI heading toward a second straight weekly gain. The sharp rise reflects growing concerns that further military escalation could disrupt crude exports from the Middle East and tighten global energy markets.
Analysts said the possibility of another major supply disruption point emerging in the Red Sea has added additional uncertainty to the oil market outlook. Tim Waterer, chief market analyst at KCM Trade, said the combination of risks affecting both the Strait of Hormuz and the Red Sea has created a “dual-risk scenario” that is keeping a geopolitical premium built into oil prices.
The Strait of Hormuz, located between Iran and Oman, is one of the world’s most critical energy chokepoints, with a significant share of global oil shipments passing through the narrow waterway. Any disruption in the area could quickly affect international oil supplies and push prices higher.
The latest escalation follows the breakdown of a temporary agreement that had paused fighting in the region. On Wednesday, the United States launched two major waves of airstrikes in a single day against targets near Iran’s southern coastline, marking the first major offensive action since the truce was established last month. U.S. forces continued strikes on Thursday as tensions continued to rise.
Iran has responded with missile and drone attacks targeting U.S. military facilities in neighboring countries, including strikes aimed at a recently expanded air base in Jordan. The continued exchange of attacks has increased fears that the conflict could spread further across the region and threaten energy infrastructure.
Qatar’s defense ministry said its military forces intercepted an Iranian missile attack early Friday, while the country’s interior ministry reported that a child was injured by shrapnel during interception operations. The incident highlighted the wider regional risks as Gulf nations remain on alert.
International Energy Agency Executive Director Fatih Birol warned that oil security remains a major concern as the conflict continues. Speaking at an event hosted by the Council on Foreign Relations in Washington, Birol said the situation could become increasingly worrying if conditions fail to improve in the coming weeks.
The U.S. Central Command said American forces launched another round of attacks against Iran, describing them as efforts to further weaken Iranian military capabilities. Tehran has continued retaliatory operations, increasing fears that the confrontation could move beyond direct military exchanges and affect global trade routes.
Adding to supply concerns, Iran’s leadership has reportedly instructed its Houthi allies in Yemen to prepare for possible action against Red Sea shipping routes if the United States targets Iranian power infrastructure, according to sources familiar with the matter. Such a move could threaten one of the world’s busiest maritime corridors, where oil tankers and commercial vessels regularly travel.
The possibility of disruptions in both the Strait of Hormuz and the Red Sea has created renewed anxiety among energy traders, who are closely monitoring developments for signs of further escalation.
Technical analysts also pointed to continued upward momentum in crude prices. Analysts at IG said WTI could potentially test levels in the mid-$80 range if it remains above key support levels in the mid-$70s.
With tensions between Washington and Tehran showing few signs of easing, oil markets are expected to remain highly sensitive to military developments, diplomatic efforts, and any threats to major global shipping routes. Investors are now watching closely to determine whether the latest escalation represents a temporary spike in tensions or the beginning of a broader disruption to global energy supplies.
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