Hormuz Risks Keep Oil Prices Elevated Amid US-Iran Tensions

Oil prices have risen for four consecutive sessions due to unresolved tensions between the US and Iran. The conflict has restricted energy flows through the Strait of Hormuz, with only seven commodity ships transiting the area on Thursday. Brent crude oil prices reached $94.39 by Friday's close, a 6.39% gain over the week.

Westpac economist Luka Belobrajdic noted that 'a lack of progress towards resolving the conflict between the US and Iran saw oil rise for a fourth consecutive session.'

The recent price action has moved beyond several banks' base cases, with Goldman Sachs earlier predicting an $80-$90 range for Brent unless a US-Iran agreement was confirmed or the conflict escalated materially. With Brent now above $94, the market is shifting towards the escalation side of that framework.