Middle East Tensions Send Oil Prices Plummeting
Oil prices fell on Friday by over 3% but are still on track for significant weekly gains due to escalating tensions in the Middle East. The price of Brent futures dropped $3.59, or 3.57%, to $97.10 a barrel at 1240 GMT after Iran-aligned Houthis said they struck two Saudi oil tankers in the Red Sea.
The previous session saw Brent prices settle above $100 for the first time since May. Despite Friday's decline, Brent futures are still set for more than a 10% advance this week. West Texas Intermediate (WTI) futures were down $3.14, or 3.41%, at $89.05 a barrel, on track for an almost 8% weekly rise.
Analysts attribute the price increase to the ongoing US-Israeli war with Iran and disruptions in energy flows through the Red Sea. Rystad analyst Janiv Shah stated that 'tensions in the Middle East from the continued US attacks on Iran, additional Houthi involvement in the Red Sea and CPC outages have inevitably driven prices up as supply becomes squeezed once again.'