Middle East Tensions Fuel Oil Price Surge

Oil prices are poised for a weekly gain due to escalating tensions in the Middle East and disruptions to energy flows. On Friday, oil futures prices dropped by over 3% after Iran-aligned Houthis struck two Saudi oil tankers in the Red Sea.

The Brent crude contract fell $3.59, or 3.57%, to $97.10 a barrel at 1240 GMT. Despite this decline, the contract remains on track for a more than 10% weekly rise.

West Texas Intermediate (WTI) futures were down $3.14, or 3.41%, at $89.05 a barrel, setting it up for an almost 8% weekly gain.

Rystad analyst Janiv Shah attributed the price increase to 'tensions in the Middle East from the continued U.S. attacks on Iran' and disruptions in supply.