By COMFORT OGBONNA
Oil prices edged lower Friday but remained on track for a second consecutive weekly gain as the unresolved U.S.-Iran conflict continued to disrupt crude supplies and raise concerns about energy flows from the Middle East.
Brent crude futures fell 23 cents, or 0.3%, to $93.55 a barrel by 1:42 a.m. GMT after rising 2.4% in the previous session. U.S. West Texas Intermediate crude declined 33 cents, or 0.4%, to $86.50 a barrel after gaining 2.3% Thursday.
Despite the modest pullback, both benchmarks have posted strong gains during the week. Brent has risen more than 7% over the past five trading sessions, while WTI has gained more than 8%. Both contracts reached their highest levels since July 24.
The price increases have been driven largely by concerns that the continuing conflict could keep crude production and exports from major Middle Eastern oil producers under pressure.
The prolonged standoff has disrupted energy shipments from the region, with traders closely watching developments around the Strait of Hormuz, one of the world’s most important oil transit routes.
The waterway normally carries roughly one-fifth of global oil consumption, making any prolonged disruption a major concern for energy markets. A sustained reduction in shipping through the strait could tighten global crude supplies and push prices significantly higher.
Shipping activity has already fallen sharply. Seven commodity vessels traveled through the Strait of Hormuz on Thursday, down from 14 the previous day, according to shipping data.
The decline has added to concerns that oil exports could remain constrained if the conflict continues without a diplomatic breakthrough.
Earlier efforts to establish a ceasefire have stalled, while both sides have shown little indication of returning to negotiations. The lack of progress has increased uncertainty for oil traders, who are attempting to assess how long supply disruptions could last.
Analysts said the market is increasingly focused on the possibility that the conflict could become prolonged, keeping crude prices elevated even as traders remain cautious about the potential for sudden changes in the geopolitical situation.
The situation has also increased pressure on Gulf oil producers, including Saudi Arabia, Iraq, the United Arab Emirates and Kuwait, whose exports could be affected by continued disruptions to regional shipping routes.
The United Arab Emirates this week suspended financial and economic transactions with Iran until further notice, underscoring the growing strain between Tehran and one of the region’s major oil-producing countries.
The United States has also threatened additional economic measures against countries that provide support to Iran, adding another layer of uncertainty to global trade and energy markets.
Market analysts said the combination of geopolitical risks, shipping disruptions and reduced access to key export routes could keep upward pressure on oil prices.
BMI, part of Fitch Solutions, said it plans to review its Brent crude price outlook this month and warned that the risks to its forecast are increasingly tilted toward higher prices.
Analysts have pointed to disruptions in both the Strait of Hormuz and the Red Sea as additional threats to global oil and commodity shipments. Restrictions on shipping through those routes could increase transportation costs and make it more difficult for producers to deliver crude and other commodities to international markets.
The conflict has already caused thousands of deaths since fighting began on Feb. 28, when the United States and Israel launched military strikes against Iran.
For oil markets, the key question is how long the disruptions will last and whether diplomatic efforts can restore normal shipping through the region.
If supply restrictions persist, traders could face a tighter global market and further price increases. However, any meaningful progress toward a ceasefire or the reopening of major shipping routes could quickly ease some of the risk premium that has pushed crude prices higher.
For now, investors remain focused on developments in the Middle East, with oil prices continuing to reflect the uncertainty surrounding the conflict and the future of global energy supplies.
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