Middle East Tensions Send Oil Prices Soaring Amid Disrupted Energy Flows

The global oil market is bracing for its second weekly gain in a row, driven by concerns over disrupted energy flows and escalating tensions in the Middle East. Brent futures fell $1.82, or 1.81%, to $98.87 a barrel on Friday, but still managed to post a 12% advance this week.

The US-Israel war with Iran continues to pose significant risks to global oil supplies, with major hubs of production and supply routes surrounded by conflict. PVM Oil Associates analyst John Evans noted that 'the short-term outlook is bullish' due to these disruptions.

The Houthi rebels in Yemen have been targeting Saudi oil tankers, while the US has promised 'major military punishment' for Iran and its allies if they continue to strike at energy infrastructure. The Strait of Hormuz, a critical route for energy shipments, saw just one tanker pass through on Thursday, its lowest volume since May 7.

Analysts predict that each additional month of disruption will add $7 to $8 per barrel to Brent prices, potentially lifting the monthly average to around $114 a barrel if disruptions extend to three months. Meanwhile, Russia has struck Ukrainian ports overnight in an effort to disable Kyiv's armed forces.