Brent Hovers Near Four-Week Highs Amid Ongoing US-Iran Tensions

Oil prices remained near four-week highs on Friday and were poised for a second weekly gain due to ongoing US-Iran tensions in the Middle East. Brent crude was trading around $93.5 per barrel, while WTI hovered at $86.5 after gaining 2.3% in the previous session.

The Strait of Hormuz remains a major concern for oil markets, with only seven commodity vessels crossing the waterway on Thursday, down from 14 a day earlier, according to Kpler tracking data. The market is pricing in the possibility that reduced Gulf exports could persist if shipping conditions fail to normalize.

IG analyst Tony Sycamore sees Washington and Tehran as increasingly entrenched, leaving crude vulnerable to further gains while neither side has much room to let the confrontation drag on indefinitely. BMI, part of Fitch Solutions, also sees risks to its Brent outlook skewed higher because disruption now spans both Hormuz and the Red Sea.

The US is shifting more pressure onto Iran's economy, with President Donald Trump threatening severe penalties for countries and companies that continue supporting Tehran. The US Treasury has already expanded its Economic Fury campaign against Iranian oil, shipping, and financial networks.